Contrasting Akzo Nobel (OTCMKTS:AKZOY) & DuPont de Nemours (NYSE:DD)

DuPont de Nemours (NYSE:DD) and Akzo Nobel (OTCMKTS:AKZOY) are both large-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider & Institutional Ownership

74.0% of DuPont de Nemours shares are held by institutional investors. Comparatively, 0.4% of Akzo Nobel shares are held by institutional investors. 0.6% of DuPont de Nemours shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

DuPont de Nemours has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Akzo Nobel has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Earnings & Valuation

This table compares DuPont de Nemours and Akzo Nobel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DuPont de Nemours	$6.85 billion	3.15	$703.00 million	($1.84)	-27.94
Akzo Nobel	$11.49 billion	1.06	$758.99 million	$1.41	16.85

Akzo Nobel has higher revenue and earnings than DuPont de Nemours. DuPont de Nemours is trading at a lower price-to-earnings ratio than Akzo Nobel, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DuPont de Nemours and Akzo Nobel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DuPont de Nemours	-7.03%	7.37%	4.69%
Akzo Nobel	6.49%	14.05%	4.38%

Dividends

DuPont de Nemours pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Akzo Nobel pays an annual dividend of $0.25 per share and has a dividend yield of 1.1%. DuPont de Nemours pays out -43.5% of its earnings in the form of a dividend. Akzo Nobel pays out 17.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. DuPont de Nemours is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DuPont de Nemours and Akzo Nobel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DuPont de Nemours	1	4	12	0	2.65
Akzo Nobel	1	2	1	1	2.40

DuPont de Nemours presently has a consensus price target of $49.46, indicating a potential downside of 3.80%. Given DuPont de Nemours’ stronger consensus rating and higher probable upside, analysts clearly believe DuPont de Nemours is more favorable than Akzo Nobel.

Summary

DuPont de Nemours beats Akzo Nobel on 10 of the 17 factors compared between the two stocks.

About DuPont de Nemours

DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.

About Akzo Nobel

Akzo Nobel N.V. engages in the production and sale of paints and coatings worldwide. The company operates through two segments: Decorative Paints and Performance Coatings. It offers decorative paints, including paints, lacquers, and varnishes; and a range of mixing machines and color concepts for the building and renovation industry, as well as specialty coatings. The company also provides performance coatings that protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. It offers its products under AkzoNobel, Alabastine, Alba, Andercol, Apla, Armstead Trade, Astral, Astral Batiment, AwlGrip, Brikol, Dulux, Bruguer, Cetabever, Cetol, Chemcraft, Colourland Paints, CONSOLAN, Coral, Cromadex, Cuprinol, Dynacoat, Flexa, Glitsa, Grip-Gard, Herbol, Hammerite, International, Interlux, Innenweis, Interpon, Inca, Luxol, Levis, Lesonal, Molto, Modern Classikk, Maxilite, Mauvilac, Mason CT, Marshall, Mactra, Nordsjo, Oxirite, Protecto, Procolor, Polyfilla, Polycell, Pinotex, Pintuco, Resicoat, Relest, Sparlack, Sadolin, Sikkens, Sea Hawk, Savana, Salcomix, Trimetal, Titanlux, Taubmans, U-tech, Vpowdertech, Vivechrom, Xylazel, Xyladecor, Wanda, and Zweihorn brands. The company serves to energy, packaging, infrastructure, and shipbuilding and maintenance industries, as well as general industries, such as agricultural and construction equipment, construction-related steel, metal fabrication, pipes, appliances, and transportation. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.