Nutrien (NYSE:NTR) & RPM International (NYSE:RPM) Head-To-Head Review

RPM International (NYSE:RPM) and Nutrien (NYSE:NTR) are both large-cap materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

80.9% of RPM International shares are owned by institutional investors. Comparatively, 63.1% of Nutrien shares are owned by institutional investors. 1.5% of RPM International shares are owned by insiders. Comparatively, 3.1% of Nutrien shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

RPM International pays an annual dividend of $2.16 per share and has a dividend yield of 2.2%. Nutrien pays an annual dividend of $2.20 per share and has a dividend yield of 2.9%. RPM International pays out 41.9% of its earnings in the form of a dividend. Nutrien pays out 44.5% 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. RPM International has raised its dividend for 51 consecutive years and Nutrien has raised its dividend for 7 consecutive years.

Earnings and Valuation

This table compares RPM International and Nutrien”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPM International	$7.86 billion	1.60	$661.39 million	$5.16	19.08
Nutrien	$26.89 billion	1.37	$2.27 billion	$4.94	15.61

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

Risk and Volatility

RPM International has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Nutrien has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RPM International and Nutrien, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPM International	0	3	11	0	2.79
Nutrien	1	4	17	0	2.73

RPM International currently has a consensus target price of $125.75, suggesting a potential upside of 27.73%. Nutrien has a consensus target price of $81.15, suggesting a potential upside of 5.23%. Given RPM International’s stronger consensus rating and higher probable upside, research analysts clearly believe RPM International is more favorable than Nutrien.

Profitability

This table compares RPM International and Nutrien’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RPM International	8.41%	22.45%	8.86%
Nutrien	8.44%	8.88%	4.27%

Summary

RPM International beats Nutrien on 11 of the 17 factors compared between the two stocks.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.

About Nutrien

Nutrien Ltd. provides crop inputs and services. The company operates through four segments: Retail, Potash, Nitrogen, and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seeds, and merchandise products. The Potash segment provides granular and standard potash products. The Nitrogen segment offers ammonia, urea, environmentally smart nitrogen, nitrogen solutions, nitrates, and sulfates. The Phosphate segment provides solid fertilizer, liquid fertilizer, and industrial and feed products. In addition, it provides services directly to growers through a network of farm centers in North America, South America, and Australia. The company is headquartered in Saskatoon, Canada.