Reviewing Kuraray (OTCMKTS:KURRY) & Ecovyst (NYSE:ECVT)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ecovyst and Kuraray, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecovyst	1	1	4	1	2.71
Kuraray	1	0	0	0	1.00

Ecovyst currently has a consensus price target of $14.62, suggesting a potential upside of 37.05%. Given Ecovyst’s stronger consensus rating and higher possible upside, analysts plainly believe Ecovyst is more favorable than Kuraray.

Valuation and Earnings

This table compares Ecovyst and Kuraray”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ecovyst	$723.50 million	1.60	-$71.13 million	$0.32	33.35
Kuraray	$5.41 billion	0.69	$50.04 million	$0.53	69.68

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

Risk & Volatility

Ecovyst has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Kuraray has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.

Institutional & 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ecovyst	3.72%	14.38%	6.38%
Kuraray	0.92%	5.37%	3.08%

Summary

Ecovyst beats Kuraray on 11 of the 15 factors compared between the two stocks.

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.

About Kuraray

Kuraray Co., Ltd. is a Japanese specialty chemicals and materials company that develops and manufactures products for industrial and consumer applications. Its portfolio includes polyvinyl alcohol (PVA) resin and fiber, ethylene vinyl alcohol (EVOH) resin, synthetic leather, activated carbon, and specialty chemicals. The company’s materials are used in applications such as packaging, automotive components, construction, electronics, water treatment, and healthcare. Kuraray also produces functional resins, elastomers, fibers, and other performance materials, including products sold under brands such as EVAL, KURALON, and CLARINO.