Analyzing Johnson Matthey (OTCMKTS:JMPLY) and Mitsubishi Chemical (OTCMKTS:MTLHY)

Mitsubishi Chemical (OTCMKTS:MTLHY) and Johnson Matthey (OTCMKTS:JMPLY) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for Mitsubishi Chemical and Johnson Matthey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Chemical	0	0	0	0	0.00
Johnson Matthey	1	1	1	2	2.80

Volatility and Risk

Mitsubishi Chemical has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Johnson Matthey has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Earnings & Valuation

This table compares Mitsubishi Chemical and Johnson Matthey”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi Chemical	$24.61 billion	0.41	$439.53 million	$0.61	56.89
Johnson Matthey	$16.85 billion	0.27	-$128.69 million	N/A	N/A

Mitsubishi Chemical has higher revenue and earnings than Johnson Matthey.

Profitability

This table compares Mitsubishi Chemical and Johnson Matthey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Chemical	N/A	N/A	N/A
Johnson Matthey	N/A	N/A	N/A

Dividends

Mitsubishi Chemical pays an annual dividend of $0.66 per share and has a dividend yield of 1.9%. Johnson Matthey pays an annual dividend of $2.91 per share and has a dividend yield of 5.3%. Mitsubishi Chemical pays out 108.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Johnson Matthey beats Mitsubishi Chemical on 6 of the 9 factors compared between the two stocks.

About Mitsubishi Chemical

Mitsubishi Chemical Group Corporation provides performance products, chemicals, industrial gases, health care products, and other products in Japan and internationally. It operates in five segments: Specialty Materials, Industrial Gases, Health Care, MMA, and Basic Materials. The Specialty Materials segment offers performance polymers, soarnol, gohsenol, sustainable polymers, and engineering plastics; coating materials, additives, and fines; packaging, industrial and medical, acetyl, and polyester films; engineering shapes and solutions, carbon fiber and composite materials, and fibers; aqua, life, and infrastructure solutions; and semiconductor, electronics, and battery materials. The Industrial Gases segment provides industrial gases. The Health Care segment offers ethical pharmaceuticals. The MMA segment provides methyl methacrylate (MMA) and polymethyl methacrylate (PMMA). The Basic Materials segment offers basic petrochemicals, polyolefins, and basic chemical derivatives, as well as carbon products. The company provides engineering, transportation, and warehousing services. Mitsubishi Chemical Group Corporation was incorporated in 2005 and is headquartered in Tokyo, Japan.

About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.