DowDuPont (NASDAQ: DWDP) and PolyOne Corporation (NYSE:POL) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

94.0% of PolyOne Corporation shares are owned by institutional investors. 1.6% of PolyOne Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares DowDuPont and PolyOne Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DowDuPont 7.73% N/A N/A
PolyOne Corporation -1.75% 25.84% 6.54%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DowDuPont and PolyOne Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DowDuPont 1 3 16 0 2.75
PolyOne Corporation 0 1 3 0 2.75

DowDuPont currently has a consensus target price of $79.44, suggesting a potential upside of 11.26%. PolyOne Corporation has a consensus target price of $42.50, suggesting a potential upside of 3.99%. Given DowDuPont’s higher possible upside, equities research analysts clearly believe DowDuPont is more favorable than PolyOne Corporation.

Valuation & Earnings

This table compares DowDuPont and PolyOne Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DowDuPont N/A N/A N/A N/A N/A
PolyOne Corporation $3.45 billion 0.97 $418.80 million ($0.73) -55.99

PolyOne Corporation has higher revenue and earnings than DowDuPont.

Dividends

PolyOne Corporation pays an annual dividend of $0.54 per share and has a dividend yield of 1.3%. DowDuPont does not pay a dividend. PolyOne Corporation pays out -74.0% of its earnings in the form of a dividend. PolyOne Corporation has raised its dividend for 5 consecutive years.

Summary

PolyOne Corporation beats DowDuPont on 8 of the 11 factors compared between the two stocks.

DowDuPont Company Profile

DowDuPont Inc. is a holding company formed through the merger of equals between The Dow Chemical Company and E. I. du Pont de Nemours and Company (DuPont). The Company’s business divisions include Agriculture division, Material Science division, and a Specialty Products division. The Agriculture Division offers a complete portfolio of products and technologies, and a pipeline of germplasm, traits and crop protection. The Materials Science Division provides solutions, such as packaging, transportation, infrastructure and customer care. The Specialty Products division provides solution for industrial, safety, energy, food, nutrition, construction, electronics and consumer goods industries. The company provides solutions to a range of markets, including aerospace, automotive, consumer electronics, military, printing, renewable energy, semiconductors, child nutrition, dietary supplements, carpet and apparel, fertilizer, and oil and gas/energy.

PolyOne Corporation Company Profile

PolyOne Corporation (PolyOne) provides specialized polymer materials, services and solutions. The Company’s segments include Color, Additives and Inks; Specialty Engineered Materials; 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. 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.

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