Ferro (FOE) vs. AkzoNobel (AKZOY) Head to Head Comparison

Ferro (NYSE: FOE) and AkzoNobel (OTCMKTS:AKZOY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

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95.9% of Ferro shares are held by institutional investors. Comparatively, 0.3% of AkzoNobel shares are held by institutional investors. 2.0% of Ferro shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ferro and AkzoNobel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ferro 0 0 7 0 3.00
AkzoNobel 0 2 1 0 2.33

Ferro presently has a consensus target price of $24.83, indicating a potential upside of 4.61%. Given Ferro’s stronger consensus rating and higher possible upside, equities analysts clearly believe Ferro is more favorable than AkzoNobel.

Dividends

AkzoNobel pays an annual dividend of $0.57 per share and has a dividend yield of 1.8%. Ferro does not pay a dividend. AkzoNobel pays out 34.5% of its earnings in the form of a dividend.

Profitability

This table compares Ferro and AkzoNobel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ferro 4.08% 33.58% 7.20%
AkzoNobel 6.19% 16.46% 6.91%

Risk and Volatility

Ferro has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, AkzoNobel has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ferro and AkzoNobel’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ferro $1.40 billion 1.43 $57.05 million $1.29 18.40
AkzoNobel $10.86 billion 2.25 $940.40 million $1.65 19.56

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

Summary

Ferro beats AkzoNobel on 9 of the 16 factors compared between the two stocks.

Ferro Company Profile

Ferro Corporation produces specialty materials in the United States and internationally. It operates through four business units: Tile Coating Systems; Porcelain Enamel; Performance Colors and Glass; and Color Solutions. The company offers frits, porcelain and other glass enamels, glazes, stains, decorating colors, pigments, inks, polishing materials, dielectrics, electronic glasses, and other specialty coatings. Its products are used in appliances, automobiles, building and renovation, electronics, household furnishings, industrial products, packaging, and sanitary applications. The company markets and sells its products directly, as well as through agents and distributors. Its customers include manufacturers of ceramic tile, construction materials, automobile parts, automobiles, architectural and container glass, and electronic components and devices. Ferro Corporation was founded in 1919 and is headquartered in Mayfield Heights, Ohio.

AkzoNobel Company Profile

Akzo Nobel N.V. operates as a paints and coatings company in the Netherlands and internationally. The company operates through Decorative Paints and Performance Coatings segments. It provides decorative paints, including paints, lacquers, and varnishes; mixing machines, color concepts, and training courses for the building and renovation industry; and specialty coatings for metal, wood, and other building materials. The company offers its decorative paints under the Alba, Astral, Bruguer, Coral, Dulux, Flexa, Inca, Levis, Marshall, Nordsjo, Sadolin, Sikkens, and Vivechrome brands. It also offers performance coatings to protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.

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