Head to Head Analysis: Avient (NYSE:AVNT) versus Tokuyama (OTCMKTS:TKYMY)

Tokuyama (OTCMKTS:TKYMY) and Avient (NYSE:AVNT) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Dividends

Tokuyama pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. Avient pays an annual dividend of $1.10 per share and has a dividend yield of 2.6%. Tokuyama pays out 22.2% of its earnings in the form of a dividend. Avient pays out 123.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avient has increased its dividend for 1 consecutive years. Avient is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

95.5% of Avient shares are owned by institutional investors. 0.9% of Avient shares are owned by 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.

Risk and Volatility

Tokuyama has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Avient has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tokuyama and Avient”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokuyama	$2.25 billion	0.83	$154.35 million	$1.17	11.09
Avient	$3.26 billion	1.18	$81.90 million	$0.89	47.34

Tokuyama has higher earnings, but lower revenue than Avient. Tokuyama is trading at a lower price-to-earnings ratio than Avient, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tokuyama and Avient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokuyama	7.42%	9.05%	5.00%
Avient	2.51%	10.95%	4.31%

Analyst Ratings

This is a summary of current ratings and recommmendations for Tokuyama and Avient, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokuyama	0	0	0	0	0.00
Avient	0	4	3	0	2.43

Avient has a consensus price target of $47.00, suggesting a potential upside of 11.56%. Given Avient’s stronger consensus rating and higher probable upside, analysts clearly believe Avient is more favorable than Tokuyama.

Summary

Avient beats Tokuyama on 12 of the 17 factors compared between the two stocks.

About Tokuyama

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.

About Avient

Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.