Analyzing bpost NV/SA (OTCMKTS:BPOSY) and Covestro (OTCMKTS:COVTY)

bpost NV/SA (OTCMKTS:BPOSY) and Covestro (OTCMKTS:COVTY) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Valuation & Earnings

This table compares bpost NV/SA and Covestro”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
bpost NV/SA	$4.61 billion	0.07	$71.21 million	($1.36)	-1.14
Covestro	$18.93 billion	0.68	-$286.58 million	($1.10)	-31.05

bpost NV/SA has higher earnings, but lower revenue than Covestro. Covestro is trading at a lower price-to-earnings ratio than bpost NV/SA, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for bpost NV/SA and Covestro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
bpost NV/SA	0	0	0	0	0.00
Covestro	0	2	0	0	2.00

Profitability

This table compares bpost NV/SA and Covestro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
bpost NV/SA	1.96%	9.66%	2.37%
Covestro	N/A	N/A	N/A

Risk and Volatility

bpost NV/SA has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Covestro has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Dividends

bpost NV/SA pays an annual dividend of $0.07 per share and has a dividend yield of 4.5%. Covestro pays an annual dividend of $1.31 per share and has a dividend yield of 3.8%. bpost NV/SA pays out -5.1% of its earnings in the form of a dividend. Covestro pays out -119.1% 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.

About bpost NV/SA

bpost NV/SA, together with its subsidiaries, provides mail and parcel services to individuals, businesses, and public institutions in Belgium, rest of Europe, the United States, and internationally. It operates through Belgium, E-Logistics Eurasia, and E-Logistics North America segments. The company offers collection, transport, sorting, and distribution of addressed and non-addressed mail, printed documents, newspapers, periodicals, and parcels, as well as banking and financial products, e-commerce logistics, express delivery, and related services. It also provides transactional mails, advertising mails, press, domestic and international parcels, and logistic solutions; e-commerce fulfilment, including warehousing and handling of goods; e-commerce cross-border services, including custom duties services; operational back-office services, including call center, payment and financial, fraud and tax, administrative and document management services; and proximity and convenience services, such as the access to the network and over-the-counter service for different partners and sale of self-produced goods, as well as retail products and goods of partners, including bpost bank products; repair of electronics; and import services. The company was founded in 1830 and is headquartered in Brussels, Belgium.

About Covestro

Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.