Eastman Chemical (NYSE:EMN) and DuPont de Nemours (NYSE:DD) are both large-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Eastman Chemical and DuPont de Nemours' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Eastman Chemical | 5.72% | 13.86% | 5.32% |
| DuPont de Nemours | 15.97% | 6.76% | 3.74% |
Analyst Recommendations
This is a summary of recent recommendations for Eastman Chemical and DuPont de Nemours, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Eastman Chemical | 0 | 3 | 8 | 0 | 2.73 |
| DuPont de Nemours | 0 | 12 | 7 | 0 | 2.37 |
Eastman Chemical presently has a consensus price target of $118.5833, suggesting a potential upside of 0.55%. DuPont de Nemours has a consensus price target of $82.7059, suggesting a potential upside of 7.37%. Given DuPont de Nemours' higher probable upside, analysts plainly believe DuPont de Nemours is more favorable than Eastman Chemical.
Volatility & Risk
Eastman Chemical has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, DuPont de Nemours has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.
Earnings and Valuation
This table compares Eastman Chemical and DuPont de Nemours' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Eastman Chemical | $8.47 billion | 1.90 | $478 million | $6.15 | 19.18 |
| DuPont de Nemours | $20.40 billion | 2.01 | $-2,951,000,000.00 | $3.36 | 22.93 |
Eastman Chemical has higher earnings, but lower revenue than DuPont de Nemours. Eastman Chemical is trading at a lower price-to-earnings ratio than DuPont de Nemours, indicating that it is currently the more affordable of the two stocks.
Dividends
Eastman Chemical pays an annual dividend of $2.76 per share and has a dividend yield of 2.3%. DuPont de Nemours pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. Eastman Chemical pays out 44.9% of its earnings in the form of a dividend. DuPont de Nemours pays out 35.7% 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. Eastman Chemical has increased its dividend for 1 consecutive years and DuPont de Nemours has increased its dividend for 1 consecutive years.
Institutional & Insider Ownership
84.2% of Eastman Chemical shares are owned by institutional investors. Comparatively, 70.5% of DuPont de Nemours shares are owned by institutional investors. 1.9% of Eastman Chemical shares are owned by company insiders. Comparatively, 0.2% of DuPont de Nemours shares are owned by company 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.
Summary
Eastman Chemical beats DuPont de Nemours on 10 of the 16 factors compared between the two stocks.
