Head to Head Review: PPG Industries (NYSE:PPG) & Givaudan (OTCMKTS:GVDNY)

PPG Industries (NYSE:PPG) and Givaudan (OTCMKTS:GVDNY) are both large-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Dividends

PPG Industries pays an annual dividend of $2.84 per share and has a dividend yield of 2.9%. Givaudan pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. PPG Industries pays out 40.9% of its earnings in the form of a dividend. PPG Industries has raised its dividend for 54 consecutive years. PPG Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

81.9% of PPG Industries shares are owned by institutional investors. Comparatively, 0.0% of Givaudan shares are owned by institutional investors. 0.3% of PPG Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares PPG Industries and Givaudan”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPG Industries	$15.88 billion	1.38	$1.58 billion	$6.94	14.15
Givaudan	$9.02 billion	3.52	$1.29 billion	N/A	N/A

PPG Industries has higher revenue and earnings than Givaudan.

Risk and Volatility

PPG Industries has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Givaudan has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares PPG Industries and Givaudan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PPG Industries	9.93%	22.30%	7.87%
Givaudan	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PPG Industries and Givaudan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPG Industries	0	10	7	1	2.50
Givaudan	1	1	2	1	2.60

PPG Industries presently has a consensus price target of $125.86, suggesting a potential upside of 28.14%. Given PPG Industries’ higher possible upside, research analysts plainly believe PPG Industries is more favorable than Givaudan.

Summary

PPG Industries beats Givaudan on 12 of the 15 factors compared between the two stocks.

About PPG Industries

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. The Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic and aluminum tubes for food, beverage and personal care, promotional, and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. PPG Industries, Inc. was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.

About Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.