Critical Analysis: Showa Denko Materials (OTCMKTS:HCHMY) versus C.P. Pokphand (OTCMKTS:CPKPY)

Profitability

This table compares C.P. Pokphand and Showa Denko Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C.P. Pokphand	N/A	N/A	N/A
Showa Denko Materials	2.60%	3.82%	2.31%

Valuation & Earnings

This table compares C.P. Pokphand and Showa Denko Materials”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C.P. Pokphand	$4.33 billion	0.82	$2.16 billion	N/A	N/A
Showa Denko Materials	$5.81 billion	1.56	$150.89 million	$1.45	60.10

C.P. Pokphand has higher earnings, but lower revenue than Showa Denko Materials.

Insider and Institutional Ownership

0.0% of C.P. Pokphand shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

C.P. Pokphand has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Showa Denko Materials has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Summary

Showa Denko Materials beats C.P. Pokphand on 6 of the 8 factors compared between the two stocks.

About C.P. Pokphand

CP Pokphand Co. Ltd. is an investment holding company, which engages in the manufacture and trade of animal feed products. It operates through the following business segments: China Agri-Food; Vietnam Agri-Food; and Investment and Property Holding. The China Agri-Food segment produces and distributes animal feed and processed food. The Vietnam Agri-Food segment breeds, farms, and sells livestock and aquatic animals. The Investment and Property Holding segment manages and leases out residential and commercial projects. The company was founded in 1987 and is headquartered in Hong Kong.

About Showa Denko Materials

Showa Denko Materials Co., Ltd. manufactures and sells functional materials, and advanced components and systems in Japan and internationally. The company provides semiconductor related materials, such as chemical mechanical planarization slurry, high heat resistant fine polyimides, photosensitive insulation coatings, die bonding pastes and films, epoxy molding compounds, liquid encapsulants, cleaning sheets, high heat resistant coating materials, map molding support tapes, release sheets, and dicing films; and display and touch panel related materials, including anisotropic conductive films, transparent conductive transfer films, and adhesive films for displays. It also offers photovoltaic related materials comprising conductive films; advanced films, RFID tags, foam products, and food wrap films; lithium-ion batteries materials, carbon brushes, and ceramics; resins, adhesives and tapes, and electrical insulating materials; base and process materials for printed wiring boards (PWBs); and white epoxy molding compounds for LED reflectors. In addition, the company provides automotive products consisting of molded plastics, poly-sheets, carbon sliding materials, SPD films, protective films, automotive batteries, and powder metal products; and industrial batteries and capacitors, as well as electrical equipment, including DC power supply units and systems, and uninterruptible power supply products. Further, it provides PWBs, such as high layer PWBs, high density multi wiring boards, and PWBs for IC testers; allergy diagnostic kits, tear total IgE detection kits, in-vitro diagnostic kits, and exosomal mRNA isolation kits, as well as regenerative medicine contract development and manufacturing services; and golf carts. The company was formerly known as Hitachi Chemical Company, Ltd. The company was founded in 1912 and is headquartered in Tokyo, Japan. As of April 20, 2020, Showa Denko Materials Co., Ltd. operates as a subsidiary of Showa Denko K.K.