Oil-Dri Corporation Of America (NYSE:ODC) and Tokuyama (OTCMKTS:TKYMY) Critical Contrast

Tokuyama (OTCMKTS:TKYMYGet Free Report) and Oil-Dri Corporation Of America (NYSE:ODCGet Free Report) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tokuyama and Oil-Dri Corporation Of America, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tokuyama 0 0 0 0 0.00
Oil-Dri Corporation Of America 0 0 1 0 3.00

Insider and Institutional Ownership

49.0% of Oil-Dri Corporation Of America shares are held by institutional investors. 11.7% of Oil-Dri Corporation Of America shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Tokuyama and Oil-Dri Corporation Of America”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tokuyama $2.25 billion 0.83 $154.35 million $1.17 11.09
Oil-Dri Corporation Of America $485.57 million 1.98 $54.00 million $3.64 18.13

Tokuyama has higher revenue and earnings than Oil-Dri Corporation Of America. Tokuyama is trading at a lower price-to-earnings ratio than Oil-Dri Corporation Of America, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Tokuyama has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Oil-Dri Corporation Of America has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Dividends

Tokuyama pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. Oil-Dri Corporation Of America pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Tokuyama pays out 22.2% of its earnings in the form of a dividend. Oil-Dri Corporation Of America pays out 19.8% 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. Oil-Dri Corporation Of America has increased its dividend for 11 consecutive years.

Profitability

This table compares Tokuyama and Oil-Dri Corporation Of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tokuyama 7.42% 9.06% 5.09%
Oil-Dri Corporation Of America 11.10% 21.06% 14.19%

Summary

Oil-Dri Corporation Of America beats Tokuyama on 13 of the 16 factors compared between the two stocks.

About Tokuyama

(Get Free Report)

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.

About Oil-Dri Corporation Of America

(Get Free Report)

Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.

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