Financial Survey: Arkema (OTCMKTS:ARKAY) & Johnson Matthey (OTCMKTS:JMPLY)

Johnson Matthey (OTCMKTS:JMPLY) and Arkema (OTCMKTS:ARKAY) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

Johnson Matthey pays an annual dividend of $1.16 per share and has a dividend yield of 2.1%. Arkema pays an annual dividend of $3.03 per share and has a dividend yield of 4.1%. Arkema pays out 348.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Johnson Matthey and Arkema, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Matthey	0	3	1	2	2.83
Arkema	3	3	2	0	1.88

Valuation and Earnings

This table compares Johnson Matthey and Arkema”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Matthey	$14.89 billion	0.32	$475.91 million	N/A	N/A
Arkema	$10.26 billion	0.54	$71.28 million	$0.87	84.21

Johnson Matthey has higher revenue and earnings than Arkema.

Risk & Volatility

Johnson Matthey has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Arkema has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Profitability

This table compares Johnson Matthey and Arkema’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson Matthey	N/A	N/A	N/A
Arkema	0.65%	4.44%	2.31%

About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.

About Arkema

Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company operates in three segments: Adhesive Solutions, Advanced Materials and Coating Solutions, and Intermediates. The Adhesive Solutions segment provides solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. This segment also offers performance polymers, such as specialty polyamides, PVDF, polyimides, fluorospecialties, and polyetherketoneketone; and performance additives which includes molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide. The Advance Materials and Coating Solutions segment offers coating solutions, including comprising EU/US acrylics and coating resins; coating additives, such as sartomer photocure resins and coatex rheology additives. This segment also provides decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbent, water treatment and oil and gas extraction, and 3D printing and electronics industries. The Intermediates segment provides fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.