DOW (DOW) Competitors

DOW (NYSE:DOW) and Cabot (NYSE:CBT) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, media sentiment, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Do analysts prefer DOW or CBT?

DOW presently has a consensus price target of $29.79, indicating a potential upside of 31.75%. Cabot has a consensus price target of $85.00, indicating a potential upside of 16.39%. Given DOW's stronger consensus rating and higher probable upside, equities research analysts clearly believe DOW is more favorable than Cabot.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DOW	3 Sell rating(s)	13 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.10
Cabot	1 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00

Does the media prefer DOW or CBT?

In the previous week, DOW had 20 more articles in the media than Cabot. MarketBeat recorded 30 mentions for DOW and 10 mentions for Cabot. Cabot's average media sentiment score of 0.88 beat DOW's score of 0.21 indicating that Cabot is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
DOW	3 Very Positive mention(s)	2 Positive mention(s)	24 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Cabot	3 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals believe in DOW or CBT?

64.0% of DOW shares are held by institutional investors. Comparatively, 93.2% of Cabot shares are held by institutional investors. 0.5% of DOW shares are held by company insiders. Comparatively, 3.0% of Cabot shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Which has better valuation & earnings, DOW or CBT?

DOW has higher revenue and earnings than Cabot. DOW is trading at a lower price-to-earnings ratio than Cabot, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DOW	$41.82B	0.38	$1.12B	-$1.40	-16.15
Cabot	$3.99B	0.97	$380M	$7.65	9.55

Is DOW or CBT a better dividend stock?

DOW pays an annual dividend of $1.40 per share and has a dividend yield of 6.2%. Cabot pays an annual dividend of $1.80 per share and has a dividend yield of 2.5%. DOW pays out -100.0% of its earnings in the form of a dividend. Cabot pays out 23.5% 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. Cabot has increased its dividend for 14 consecutive years. DOW is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more volatility & risk, DOW or CBT?

DOW has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Cabot has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Is DOW or CBT more profitable?

Cabot has a net margin of 11.14% compared to DOW's net margin of -2.35%. Cabot's return on equity of 25.68% beat DOW's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
DOW	-2.35%	0.31%	0.10%
Cabot	11.14%	25.68%	10.92%

Summary

Cabot beats DOW on 10 of the 19 factors compared between the two stocks.