DCC plc (DCC.L) (LON:DCC) and Croda International (LON:CRDA) are both mid-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Valuation & Earnings
This table compares DCC plc (DCC.L) and Croda International's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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DCC plc (DCC.L) | £13.37 billion | 0.43 | N/A | GBX 290.60 | 19.86 |
Croda International | £1.34 billion | 6.44 | N/A | GBX 159 | 38.79 |
DCC plc (DCC.L) is trading at a lower price-to-earnings ratio than Croda International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DCC plc (DCC.L) and Croda International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
DCC plc (DCC.L) | N/A | N/A | N/A |
Croda International | N/A | N/A | N/A |
Dividends
DCC plc (DCC.L) pays an annual dividend of GBX 1.45 per share and has a dividend yield of 0.0%. Croda International pays an annual dividend of GBX 0.90 per share and has a dividend yield of 0.0%. DCC plc (DCC.L) pays out 0.5% of its earnings in the form of a dividend. Croda International pays out 0.6% 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. DCC plc (DCC.L) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent ratings for DCC plc (DCC.L) and Croda International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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DCC plc (DCC.L) | 0 | 3 | 6 | 0 | 2.67 |
Croda International | 2 | 9 | 2 | 0 | 2.00 |
DCC plc (DCC.L) currently has a consensus target price of GBX 7,126.22, indicating a potential upside of 23.50%. Croda International has a consensus target price of GBX 5,131.82, indicating a potential downside of 16.80%. Given DCC plc (DCC.L)'s stronger consensus rating and higher probable upside, analysts clearly believe DCC plc (DCC.L) is more favorable than Croda International.
Summary
DCC plc (DCC.L) beats Croda International on 7 of the 9 factors compared between the two stocks.