Analyzing PolyOne Corporation (POL) and Dow Chemical Company (The) (NYSE:DOW)
PolyOne Corporation (NYSE: POL) and Dow Chemical Company (The) (NYSE:DOW) are both mid-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitabiliy.
Risk & Volatility
PolyOne Corporation has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Dow Chemical Company (The) has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.
This table compares PolyOne Corporation and Dow Chemical Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dow Chemical Company (The)||9.77%||16.65%||5.58%|
Institutional and Insider Ownership
94.3% of PolyOne Corporation shares are owned by institutional investors. Comparatively, 69.0% of Dow Chemical Company (The) shares are owned by institutional investors. 1.6% of PolyOne Corporation shares are owned by company insiders. Comparatively, 0.9% of Dow Chemical Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
PolyOne Corporation pays an annual dividend of $0.54 per share and has a dividend yield of 1.4%. Dow Chemical Company (The) pays an annual dividend of $1.84 per share and has a dividend yield of 2.8%. PolyOne Corporation pays out 26.2% of its earnings in the form of a dividend. Dow Chemical Company (The) pays out 46.8% 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. PolyOne Corporation has increased its dividend for 6 consecutive years and Dow Chemical Company (The) has increased its dividend for 5 consecutive years.
Valuation and Earnings
This table compares PolyOne Corporation and Dow Chemical Company (The)’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PolyOne Corporation||$3.39 billion||0.93||$408.00 million||$2.06||18.76|
|Dow Chemical Company (The)||$50.69 billion||1.60||$8.98 billion||$3.93||16.89|
Dow Chemical Company (The) has higher revenue and earnings than PolyOne Corporation. Dow Chemical Company (The) is trading at a lower price-to-earnings ratio than PolyOne Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for PolyOne Corporation and Dow Chemical Company (The), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dow Chemical Company (The)||0||3||8||0||2.73|
PolyOne Corporation presently has a consensus price target of $37.67, indicating a potential downside of 2.52%. Dow Chemical Company (The) has a consensus price target of $69.44, indicating a potential upside of 4.60%. Given Dow Chemical Company (The)’s stronger consensus rating and higher possible upside, analysts clearly believe Dow Chemical Company (The) is more favorable than PolyOne Corporation.
Dow Chemical Company (The) beats PolyOne Corporation on 9 of the 17 factors compared between the two stocks.
PolyOne Corporation Company Profile
PolyOne Corporation (PolyOne) provides specialized polymer materials, services and solutions. Its segments include Color, Additives and Inks; Specialty Engineered Materials; Designed Structures and Solutions; Performance Products and Solutions, and PolyOne Distribution. The Color, Additives and Inks segment provides custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets. The Specialty Engineered Materials segment provides specialty polymer formulations, services and solutions for designers, assemblers and processors of thermoplastic materials. Its Designed Structures and Solutions segment utilizes a range of polymers, specialty additives and processing technologies. The Performance Products and Solutions segment consists of the Geon Performance Materials and Producer Services business units. As of December 31, 2016, the PolyOne Distribution segment distributed more than 4,000 grades of engineering and commodity grade resins.
Dow Chemical Company (The) Company Profile
The Dow Chemical Company manufactures and supplies products used primarily as raw materials in the manufacture of customer products and services. The Company’s segments include Agricultural Sciences, which is engaged in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils; Consumer Solutions, which consists of Consumer Care, Dow Automotive Systems, Dow Electronic Materials and Consumer Solutions-Silicones businesses; Infrastructure Solutions, which consists of Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions, Performance Monomers and Infrastructure Solutions-Silicones businesses; Performance Materials & Chemicals, which consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses, and Performance Plastics, which consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons businesses.
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