Head to Head Analysis: KURARAY CO LTD/ADR (OTCMKTS:KURRY) & W. R. Grace & Co (OTCMKTS:GRA)

KURARAY CO LTD/ADR (OTCMKTS:KURRY) and W. R. Grace & Co (NYSE:GRA) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Institutional & Insider Ownership

0.0% of KURARAY CO LTD/ADR shares are held by institutional investors. Comparatively, 87.1% of W. R. Grace & Co shares are held by institutional investors. 2.0% of W. R. Grace & Co shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares KURARAY CO LTD/ADR and W. R. Grace & Co’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KURARAY CO LTD/ADR 4.04% 6.05% 3.57%
W. R. Grace & Co 9.31% 85.42% 8.03%

Dividends

KURARAY CO LTD/ADR pays an annual dividend of $0.90 per share and has a dividend yield of 2.7%. W. R. Grace & Co pays an annual dividend of $1.08 per share and has a dividend yield of 1.7%. KURARAY CO LTD/ADR pays out 25.9% of its earnings in the form of a dividend. W. R. Grace & Co pays out 26.1% 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. W. R. Grace & Co has raised its dividend for 2 consecutive years. KURARAY CO LTD/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares KURARAY CO LTD/ADR and W. R. Grace & Co’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KURARAY CO LTD/ADR $5.46 billion 0.71 $305.40 million $3.48 9.63
W. R. Grace & Co $1.93 billion 2.24 $167.60 million $4.14 15.69

KURARAY CO LTD/ADR has higher revenue and earnings than W. R. Grace & Co. KURARAY CO LTD/ADR is trading at a lower price-to-earnings ratio than W. R. Grace & Co, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for KURARAY CO LTD/ADR and W. R. Grace & Co, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KURARAY CO LTD/ADR 0 0 0 0 N/A
W. R. Grace & Co 0 0 6 0 3.00

W. R. Grace & Co has a consensus price target of $85.60, suggesting a potential upside of 31.85%. Given W. R. Grace & Co’s higher possible upside, analysts clearly believe W. R. Grace & Co is more favorable than KURARAY CO LTD/ADR.

Risk and Volatility

KURARAY CO LTD/ADR has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, W. R. Grace & Co has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

W. R. Grace & Co beats KURARAY CO LTD/ADR on 12 of the 16 factors compared between the two stocks.

About KURARAY CO LTD/ADR

Kuraray Co., Ltd. manufactures and sells chemicals and resins, fibers and textiles, high performance materials, medical products, and others products worldwide. The company's Vinyl Acetate segment offers functional resins and films, including polyvinyl alcohol (PVA) resins for paper/fiber processing agents, adhesives, and others; optical-use PVA films for liquid crystal display televisions, mobile phone screens, and others; water-soluble PVA films for water soluble delivery system and others; PVB films for use as interlayers for laminated safety glass and photovoltaic module encapsulation; EVAL resins and films for food packaging, automobile tanks/vacuum insulation panels, refrigerators, and others; and PLANTIC, a bio-based barrier material for fresh food packaging and industrial uses. Its Isoprene segment produces isoprene chemicals; thermoplastic elastomers; heat-resistant polyamide resins; liquid rubber as additive agent for automobile tires and others; and acrylic thermoplastic elastomers. The company's Functional Materials segment offers man made leather products; methacrylic resins for LCDs, automobile light covers, signboards, construction materials, and others; and dental materials for treating cavities. Its Fibers and Textile segment provides PVA fibers, which are reinforcing materials for cement, concrete, and others; non-woven fabrics for everyday goods, industrial products, and others; hook and loop fasteners for clothing, sporting goods, industrial materials, and others; and polyarylate fibers for rope, fishing net, and other industrial products. The company's Trading segment engages in the import, export, and wholesale of fibers and textiles, including polyester filaments and chemicals. Its Others segment offers membranes, activated carbons, and others. The company also engages in water purification, wastewater treatment, ballast water management system, and other businesses. Kuraray Co., Ltd. was founded in 1926 and is headquartered in Tokyo, Japan.

About W. R. Grace & Co

W. R. Grace & Co. produces and sells specialty chemicals and materials worldwide. It operates through two segments, Grace Catalysts Technologies and Grace Materials Technologies. The Grace Catalysts Technologies segment offers fluid catalytic cracking (FCC) catalysts for the production of transportation fuels, such as gasoline and diesel fuels, and petrochemicals; FCC additives; and methanol-to-olefins catalysts for the conversion of methanol into petrochemical feeds, including ethylene and propylene. This segment also provides hydro processing catalysts used in process reactors to upgrade heavy oils into lighter products; polyolefin catalysts and chemical catalyst supports for the production of polypropylene and polyethylene thermoplastic resins; and chemical catalysts, as well as gas-phase polypropylene process technology to manufacture polypropylene products. The Grace Materials Technologies segment offers silica-based and silica-alumina-based materials for use in coatings, consumer, pharmaceutical, and chemical process. W. R. Grace & Co. was founded in 1854 and is headquartered in Columbia, Maryland.

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