Contrasting Neo Performance Materials (OTCMKTS:NOPMF) and DSM-Firmenich (OTCMKTS:KDSKF)

DSM-Firmenich (OTCMKTS:KDSKF) and Neo Performance Materials (OTCMKTS:NOPMF) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares DSM-Firmenich and Neo Performance Materials”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DSM-Firmenich	N/A	N/A	N/A	$0.95	26.69
Neo Performance Materials	$475.83 million	1.26	-$12.95 million	($0.17)	-84.82

DSM-Firmenich has higher earnings, but lower revenue than Neo Performance Materials. Neo Performance Materials is trading at a lower price-to-earnings ratio than DSM-Firmenich, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

33.4% of DSM-Firmenich shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares DSM-Firmenich and Neo Performance Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DSM-Firmenich	N/A	N/A	N/A
Neo Performance Materials	-1.30%	3.71%	2.32%

Analyst Recommendations

This is a summary of recent ratings and price targets for DSM-Firmenich and Neo Performance Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DSM-Firmenich	0	0	0	0	0.00
Neo Performance Materials	0	1	0	0	2.00

About DSM-Firmenich

DSM the Life Sciences and Materials Sciences Company Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSMs products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM has annual net sales of EUR 9.3 billion and employs some 23,500 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam.

About Neo Performance Materials

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.