Stepan (NYSE:SCL) and Johnson Matthey (OTCMKTS:JMPLY) Head to Head Comparison

Stepan (NYSE:SCL) and Johnson Matthey (OTCMKTS:JMPLY) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Stepan and Johnson Matthey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stepan	2	0	0	0	1.00
Johnson Matthey	1	2	1	2	2.67

Volatility & Risk

Stepan has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Johnson Matthey has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Earnings & Valuation

This table compares Stepan and Johnson Matthey”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stepan	$2.33 billion	0.53	$46.90 million	($0.62)	-87.12
Johnson Matthey	$14.89 billion	0.33	$475.91 million	N/A	N/A

Johnson Matthey has higher revenue and earnings than Stepan.

Insider & Institutional Ownership

82.7% of Stepan shares are held by institutional investors. 6.6% of Stepan shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Stepan and Johnson Matthey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stepan	-0.61%	2.65%	1.37%
Johnson Matthey	N/A	N/A	N/A

Dividends

Stepan pays an annual dividend of $1.58 per share and has a dividend yield of 2.9%. Johnson Matthey pays an annual dividend of $1.16 per share and has a dividend yield of 2.0%. Stepan pays out -254.8% of its earnings in the form of a dividend. Stepan has increased its dividend for 57 consecutive years. Stepan is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Stepan beats Johnson Matthey on 8 of the 15 factors compared between the two stocks.

About Stepan

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients. Its surfactants are also used in various applications, including emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites. The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins, including liquid and powdered products, which are used in CASE applications; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products. The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in food, flavoring, nutritional supplement, and pharmaceutical applications. Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois.

About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.