Head to Head Contrast: Asahi Glass (OTCMKTS:ASGLY) and Olin (NYSE:OLN)

Olin (NYSE:OLN) and Asahi Glass (OTCMKTS:ASGLY) are both mid-cap materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

88.7% of Olin shares are owned by institutional investors. 1.6% of Olin shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Olin and Asahi Glass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olin	-2.08%	-4.66%	-1.17%
Asahi Glass	4.04%	5.02%	2.89%

Dividends

Olin pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. Asahi Glass pays an annual dividend of $0.16 per share and has a dividend yield of 2.2%. Olin pays out -71.4% of its earnings in the form of a dividend. Asahi Glass pays out 30.2% 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. Olin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Olin and Asahi Glass”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olin	$6.78 billion	0.31	-$100.50 million	($1.12)	-16.54
Asahi Glass	$13.77 billion	0.58	$463.39 million	$0.53	13.89

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

Volatility & Risk

Olin has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Asahi Glass has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Olin and Asahi Glass, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olin	4	9	2	1	2.00
Asahi Glass	0	1	0	0	2.00

Olin currently has a consensus price target of $26.54, suggesting a potential upside of 43.27%. Given Olin’s higher probable upside, analysts plainly believe Olin is more favorable than Asahi Glass.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.

About Asahi Glass

AGC Inc. manufactures and sells glass, automotive, electronics, chemicals, and ceramics worldwide. The company offers architectural glass products, including laminated, insulating, wired, solar control, toughened, decorative, sound insulation, float and patterned, and industrial glasses; structural glazing systems; and automotive glass, such as laminated, tempered, and privacy glasses, as well as integrated glass antennas and module assembly windows. It also provides glass substrates for thin-film-transistor liquid crystal displays and OLEDs; synthetic fused silica glass, synthetic quartz crystals, silicon carbides, CMP slurry, through glass Vias, high refractive index glass, diffusers, glass ceramics substrates, optical planar devices, IR cut filters, aspherical glass and molded lens, and micro lens array products; polycarbonate and optical sheets, thin sheets, and films; and glass frits and pastes, as well as glass substrates for semiconductor packaging and other electronic materials. In addition, the company offers cover glass for smartphones and tablet devices; glass substrates for photovoltaic devices and touch panels; specialty glass; extra clear float glass; transparent conductive oxide glass for a-Si type solar module; and ultra-thin glass for electronics devices. Further, it provides chlor-alkali, polyurethanes, fluoro, and specialty chemical products; high thermal insulation ceramics wall for furnaces; and ceramic beads, sputtering targets, abrasion resistant ceramics, alumina cement, engineering fine ceramics, and ceramics molding agents for 3D printers. Additionally, the company engages in the digital signage on glass, copper clad laminate, and plastic optical fiber businesses; and gas and solvents, and life Science businesses. The company was formerly known as Asahi Glass Co., Ltd. and changed its name to AGC Inc. in July 2018. AGC Inc. was founded in 1907 and is headquartered in Tokyo, Japan.