Toray Industries (OTCMKTS:TRYIY) and Ecovyst (NYSE:ECVT) Critical Survey

Toray Industries (OTCMKTS:TRYIY) and Ecovyst (NYSE:ECVT) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Risk & Volatility

Toray Industries has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Ecovyst has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Toray Industries and Ecovyst, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toray Industries	0	1	0	1	3.00
Ecovyst	1	1	4	1	2.71

Ecovyst has a consensus target price of $14.62, indicating a potential upside of 37.05%. Given Ecovyst’s higher probable upside, analysts clearly believe Ecovyst is more favorable than Toray Industries.

Earnings & Valuation

This table compares Toray Industries and Ecovyst”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toray Industries	$17.17 billion	0.72	$524.84 million	$0.82	20.09
Ecovyst	$723.50 million	1.60	-$71.13 million	$0.32	33.35

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

Profitability

This table compares Toray Industries and Ecovyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toray Industries	3.48%	4.84%	2.66%
Ecovyst	3.72%	14.38%	6.38%

Institutional and Insider Ownership

86.7% of Ecovyst shares are owned by institutional investors. 1.8% of Ecovyst shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Ecovyst beats Toray Industries on 10 of the 14 factors compared between the two stocks.

About Toray Industries

Toray Industries is a Japanese materials and chemicals company with operations spanning fibers and textiles, performance chemicals, carbon-fiber composite materials, environmental solutions, and life sciences. Its products include synthetic fibers and fabrics, plastics and films, carbon fiber, and water-treatment membranes. Founded in 1926 as Toyo Rayon, the company initially focused on rayon and later expanded into a broad range of advanced materials and technologies. It adopted the name Toray Industries in 1970.

About Ecovyst

Ecovyst Inc. is a specialty chemicals company that supplies catalysts, materials and services to customers in the refining, chemicals and other industrial sectors. Its businesses include sulfuric acid services and catalyst technologies. Through its Ecoservices business, Ecovyst regenerates spent sulfuric acid for reuse and supplies virgin sulfuric acid. These services support industrial processes, including those used in petroleum refining and chemical manufacturing. The company’s catalyst technologies include zeolite catalysts and silica-based materials used in refining and chemical applications.