Head to Head Comparison: Mativ (NYSE:MATV) & Akzo Nobel (OTCMKTS:AKZOY)

Akzo Nobel (OTCMKTS:AKZOY) and Mativ (NYSE:MATV) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares Akzo Nobel and Mativ”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akzo Nobel	$11.49 billion	1.04	$718.44 million	$1.47	15.79
Mativ	$1.99 billion	0.33	-$337.40 million	$1.61	7.31

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

Insider & Institutional Ownership

0.4% of Akzo Nobel shares are owned by institutional investors. Comparatively, 95.0% of Mativ shares are owned by institutional investors. 1.8% of Mativ shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Akzo Nobel has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Mativ has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Dividends

Akzo Nobel pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Mativ pays an annual dividend of $0.40 per share and has a dividend yield of 3.4%. Akzo Nobel pays out 16.3% of its earnings in the form of a dividend. Mativ pays out 24.8% 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. Mativ has increased its dividend for 1 consecutive years. Mativ is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Akzo Nobel and Mativ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akzo Nobel	6.71%	12.18%	3.94%
Mativ	4.64%	12.18%	2.87%

Analyst Recommendations

This is a summary of current ratings for Akzo Nobel and Mativ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akzo Nobel	1	5	2	0	2.12
Mativ	0	1	0	0	2.00

Summary

Akzo Nobel beats Mativ on 10 of the 15 factors compared between the two stocks.

About Akzo Nobel

AkzoNobel is a Netherlands-based company that develops and manufactures paints and coatings for residential, commercial, industrial and transportation uses. Its products include decorative paints, protective coatings, marine coatings and powder coatings, sold under brands such as Dulux, Sikkens, International and Interpon. The company serves customers in markets around the world, including homeowners, contractors, manufacturers and businesses. Its history includes the Dutch paintmaker Sikkens, founded in 1792; AkzoNobel was formed in 1994 through the merger of Akzo and Nobel Industries.

About Mativ

Mativ is a global specialty materials company that develops and manufactures engineered materials for a range of industrial and consumer applications. Its products include filtration media, specialty papers, films, adhesive solutions, release liners, and materials used in healthcare and packaging. The company serves customers across markets such as filtration, infrastructure, transportation, healthcare, food and beverage, and consumer products. Its materials are designed for uses including air and liquid filtration, product protection, labeling, and technical applications.