Comparing DuPont de Nemours (NYSE:DD) & Sumitomo Chemcl (OTCMKTS:SOMMY)

Sumitomo Chemcl (OTCMKTS:SOMMY) and DuPont de Nemours (NYSE:DD) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Dividends

Sumitomo Chemcl pays an annual dividend of $0.26 per share and has a dividend yield of 1.4%. DuPont de Nemours pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Sumitomo Chemcl pays out 13.3% of its earnings in the form of a dividend. DuPont de Nemours pays out -43.0% 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.

Profitability

This table compares Sumitomo Chemcl and DuPont de Nemours’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Chemcl	4.01%	8.40%	2.82%
DuPont de Nemours	-7.03%	7.37%	4.69%

Risk & Volatility

Sumitomo Chemcl has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, DuPont de Nemours has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Sumitomo Chemcl and DuPont de Nemours, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Chemcl	0	1	0	0	2.00
DuPont de Nemours	1	3	12	1	2.76

DuPont de Nemours has a consensus target price of $51.86, suggesting a potential upside of 3.62%. Given DuPont de Nemours’ stronger consensus rating and higher possible upside, analysts plainly believe DuPont de Nemours is more favorable than Sumitomo Chemcl.

Insider & Institutional Ownership

74.0% of DuPont de Nemours shares are held by institutional investors. 0.6% of DuPont de Nemours shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sumitomo Chemcl and DuPont de Nemours”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Chemcl	$17.12 billion	0.36	$254.70 million	$1.96	9.39
DuPont de Nemours	$6.85 billion	2.99	-$779.00 million	($1.86)	-26.91

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

Summary

DuPont de Nemours beats Sumitomo Chemcl on 11 of the 17 factors compared between the two stocks.

About Sumitomo Chemcl

Sumitomo Chemical Company, Limited engages in Chemicals & Plastics, energy and functional materials, IT-related chemicals, health and crop sciences, pharmaceuticals, and other businesses worldwide. Its Essential Chemicals & Plastics segment offers synthetic resins, such as polyethylene, polypropylene, and polymethyl methacrylate resins; raw materials for synthetic fibers; and various industrial chemicals. The company's Energy & Functional Materials segment provides alumina and aluminum products used for energy products; resorcinol for tires, wood adhesives, flame retardants, and ultraviolet ray absorbants; polymer additives and rubber chemicals; synthetic rubber for tires, shoes, construction materials, and other applications; and engineering plastics and lithium-ion secondary battery materials for use in electronic components and next-generation vehicles. Its IT-Related Chemicals segment provides polarizing films, touch screen sensor panels, and color resists and polymer OLED for LC and OLED displays; photoresists and high-purity chemicals for the semiconductor manufacturing process; and compound semiconductor materials for antenna switches and other components of communication terminal equipment. The company's Health & Crop Sciences segment offers crop protection chemicals, fertilizers, feed additives, and household insecticides; active pharmaceutical ingredients and intermediates; and products to control infectious diseases. Its Pharmaceuticals segment provides prescription and diagnostic pharmaceuticals. The company's Others segment supplies electric power and steam; designs, constructs, and supervises chemical plants; provides transportation and warehousing services; and conducts physical property and environmental analysis. Sumitomo Chemical Company, Limited was founded in 1913 and is headquartered in Tokyo, Japan.

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.