Head-To-Head Analysis: Tosoh (OTCMKTS:TOSCF) vs. Eastman Chemical (NYSE:EMN)

Eastman Chemical (NYSE:EMN) and Tosoh (OTCMKTS:TOSCF) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Eastman Chemical and Tosoh’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eastman Chemical	7.75%	12.89%	5.03%
Tosoh	3.86%	6.63%	4.49%

Volatility & Risk

Eastman Chemical has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Tosoh has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Insider and Institutional Ownership

83.7% of Eastman Chemical shares are owned by institutional investors. 2.4% of Eastman Chemical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Eastman Chemical and Tosoh”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eastman Chemical	$9.38 billion	0.84	$905.00 million	$5.99	11.51
Tosoh	$6.98 billion	0.73	$382.82 million	$0.85	18.82

Eastman Chemical has higher revenue and earnings than Tosoh. Eastman Chemical is trading at a lower price-to-earnings ratio than Tosoh, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Eastman Chemical and Tosoh, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastman Chemical	0	8	6	0	2.43
Tosoh	0	0	0	0	0.00

Eastman Chemical currently has a consensus target price of $78.54, indicating a potential upside of 13.89%. Given Eastman Chemical’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Eastman Chemical is more favorable than Tosoh.

Summary

Eastman Chemical beats Tosoh on 13 of the 14 factors compared between the two stocks.

About Eastman Chemical

Eastman Chemical Company operates as a specialty materials company in the United States, China, and internationally. The company's Additives & Functional Products segment offers amine derivative-based building blocks, intermediates for surfactants, metam-based soil fumigants, and organic acid-based solutions; specialty coalescent and solvents, paint additives, and specialty polymers; and heat transfer and aviation fluids. It serves transportation, personal care, wellness, food, feed, agriculture, building and construction, water treatment, energy, consumables, durables, and electronics markets. Its Advanced Materials segment provides copolyesters, cellulosic biopolymers, cellulose esters, polyvinyl butyral sheets, and window and protective films for value-added end uses in the transportation, durables, electronics, building and construction, medical and pharma, and consumables markets. The company's Chemical Intermediates segment offers olefin and acetyl derivatives, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non-phthalate plasticizers for industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment provides cellulose acetate tow, triacetin, cellulose acetate flake, acetic acid, and acetic anhydride for use in filtration media primarily cigarette filters; natural and solution dyed acetate yarns, and staple fiber for use in consumables, and health and wellness markets; and wet-laid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, and aerospace markets. The company was founded in 1920 and is headquartered in Kingsport, Tennessee.

About Tosoh

Tosoh Corporation manufactures and sells basic chemicals, petrochemicals, specialty products, and fine chemicals worldwide. It operates through four segments: Petrochemical, Chlor-Alkali, Specialty, and Engineering. The company provides advance materials, including battery, fabricated quartzware, silica glass, thin film depositions, zeolites for catalysts and molecular sieves, zirconia injection mold components and compounds, zirconia grinding and dispersion media, and zirconia fine beads and powders. It also offers chromatographic columns, and media and diagnostic systems; clinical diagnostic systems; Portland cement and blast-furnace slag cement; and caustic soda, vinyl chloride monomer, calcium hypochlorite, and sodium bicarbonate. In addition, the company provides ethylene, propylene, C4 fraction, tertiary butyl alcohol, cumene, and aromatic compounds; and ethyleneamines, bromine, hydrobromic acids, flame retardants, non-aqueous solvents, chelating agents, ethylene dichloride, and sodium styrenesulfonate. Further, it offers polymers, such as ethylene vinyl-acetate copolymers, adhesive polymers, low and high-density polyethylene products, synthetic rubbers, functional polymers, and polyvinyl chloride pastes; and polyurethanes (PU), including methylene diphenyl diisocyanate, toluene diisocyanate, hexamethylene diisocyanate, adhesives, coating resins, elastomers, polyisocyanates for PU paints, and polyols. The company manufactures and sells water treatment systems; and engages in the construction and repair businesses. It serves chemical and petrochemical, construction, automotive, consumer electronics, information technology, bioscience, and environmental markets. The company was incorporated in 1935 and is headquartered in Tokyo, Japan.