Kronos Worldwide (NYSE:KRO – Get Free Report) and Asahi Kasei (OTCMKTS:AHKSY – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Earnings and Valuation
This table compares Kronos Worldwide and Asahi Kasei”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kronos Worldwide | $1.86 billion | 0.43 | -$110.90 million | ($1.16) | -6.05 |
| Asahi Kasei | $20.42 billion | 0.77 | $1.05 billion | $1.54 | 14.64 |
Profitability
This table compares Kronos Worldwide and Asahi Kasei’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kronos Worldwide | -7.12% | -15.01% | -6.33% |
| Asahi Kasei | 5.14% | 8.53% | 4.25% |
Risk and Volatility
Kronos Worldwide has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Asahi Kasei has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
Dividends
Kronos Worldwide pays an annual dividend of $0.20 per share and has a dividend yield of 2.9%. Asahi Kasei pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. Kronos Worldwide pays out -17.2% of its earnings in the form of a dividend. Asahi Kasei pays out 20.8% 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. Kronos Worldwide is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Kronos Worldwide and Asahi Kasei, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kronos Worldwide | 2 | 1 | 0 | 0 | 1.33 |
| Asahi Kasei | 0 | 1 | 0 | 1 | 3.00 |
Kronos Worldwide presently has a consensus price target of $5.00, suggesting a potential downside of 28.72%. Given Kronos Worldwide’s higher probable upside, equities analysts clearly believe Kronos Worldwide is more favorable than Asahi Kasei.
Institutional & Insider Ownership
15.1% of Kronos Worldwide shares are held by institutional investors. 0.2% of Kronos Worldwide shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Asahi Kasei beats Kronos Worldwide on 10 of the 16 factors compared between the two stocks.
About Kronos Worldwide
Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. It also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; specialty chemicals for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices, as well as for use in natural gas pipe, and other specialty applications. In addition, the company provides technical services for its products. It sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.
About Asahi Kasei
Asahi Kasei Corporation manufactures and sells chemicals. It offers caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, acetonitrile, methacrylonitrile, cyclohexyl methacrylate, polyethylenes, polyethylenes powder, PMMA resin, polystyrene, polybutadiene rubbers, styrene/butadiene rubbers, clear styrenic copolymer, styrenic thermoplastic elastomer, hydrogenated styrenic elastomers, membranes and systems, functional materials, foams, purging compound, polyisocyanates, polycarbonatediol, aluminum paste, latex, photopolymers and platemaking systems, films, cyclohexanol, cyclohexane, and cyclohexene. The company also offers lithium-ion battery and lead-acid battery separators, plastic optical fibers, artificial suede, nylon 66 filament, polyamide 66, polyacetal, polyphenyene ether, polypropylene compounds, 3D cubic knitted fabric, noise suppression sheets, audio devices, photosensitive polyimide/PBO precursor, latent hardeners, glass fabrics, specialty products, explosion-bonded metal clads, lining fabrics, cupro and stretch fibers, oil-water separators, cellulose nanobeads, and flame-resistant and synthetic fiber; magnetic, current, and gas sensors; deodorizing, spunbond, cupro, multifunctional, and heat-press formable thermoplastic nonwoven; and ecorise, biocradle, and bemliese products. It provides bags and containers; cooking products; cleaners; plastic packet cutting products; cyclohexyl methacrylate, bonded anchors, and microcrystalline cellulose; pharmaceuticals and diagnostic reagents, dialyzers, therapeutic apheresis, virus removal filters, defibrillators, AEDs, automated CPRs, fluid resuscitation pumps, wearable defibrillators, temperature management systems, and data solutions; construction materials; and remodeling services, as well as develops homes and apartments. The company was founded in 1922 and is headquartered in Tokyo, Japan.
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