PolyOne Corporation (NYSE: POL) and Dow Chemical Company (The) (NYSE:DWDP) are both mid-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
This table compares PolyOne Corporation and Dow Chemical Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dow Chemical Company (The)||5.01%||9.73%||4.18%|
Volatility & Risk
PolyOne Corporation has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Dow Chemical Company (The) has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
PolyOne Corporation pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. Dow Chemical Company (The) pays an annual dividend of $1.52 per share and has a dividend yield of 2.1%. PolyOne Corporation pays out -71.1% of its earnings in the form of a dividend. Dow Chemical Company (The) pays out 73.1% 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. PolyOne Corporation has raised its dividend for 5 consecutive years.
Insider & Institutional Ownership
96.4% of PolyOne Corporation shares are owned by institutional investors. Comparatively, 74.8% of Dow Chemical Company (The) shares are owned by institutional investors. 1.6% of PolyOne Corporation shares are owned by insiders. Comparatively, 0.9% of Dow Chemical Company (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares PolyOne Corporation and Dow Chemical Company (The)’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|PolyOne Corporation||$3.34 billion||1.08||$165.20 million||($0.76)||-58.96|
|Dow Chemical Company (The)||$48.16 billion||3.44||$4.32 billion||$2.08||34.01|
Dow Chemical Company (The) has higher revenue and earnings than PolyOne Corporation. PolyOne Corporation is trading at a lower price-to-earnings ratio than Dow Chemical Company (The), indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for PolyOne Corporation and Dow Chemical Company (The), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dow Chemical Company (The)||1||3||16||0||2.75|
PolyOne Corporation currently has a consensus price target of $43.17, indicating a potential downside of 3.67%. Dow Chemical Company (The) has a consensus price target of $79.41, indicating a potential upside of 12.26%. Given Dow Chemical Company (The)’s higher probable upside, analysts clearly believe Dow Chemical Company (The) is more favorable than PolyOne Corporation.
PolyOne Corporation beats Dow Chemical Company (The) on 9 of the 17 factors compared between the two stocks.
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.
Dow Chemical Company (The) 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.
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