Analyzing PPG Industries (NYSE:PPG) & Sinopec Shanghai Petrochemical (OTCMKTS:SPTJF)

Sinopec Shanghai Petrochemical (OTCMKTS:SPTJF) and PPG Industries (NYSE:PPG) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Sinopec Shanghai Petrochemical and PPG Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sinopec Shanghai Petrochemical	0	0	0	0	0.00
PPG Industries	0	10	7	0	2.41

PPG Industries has a consensus price target of $126.00, indicating a potential upside of 10.54%. Given PPG Industries’ stronger consensus rating and higher probable upside, analysts plainly believe PPG Industries is more favorable than Sinopec Shanghai Petrochemical.

Institutional and Insider Ownership

3.7% of Sinopec Shanghai Petrochemical shares are owned by institutional investors. Comparatively, 81.9% of PPG Industries shares are owned by institutional investors. 0.3% of PPG Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sinopec Shanghai Petrochemical and PPG Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sinopec Shanghai Petrochemical	N/A	N/A	N/A	N/A	N/A
PPG Industries	$15.88 billion	1.60	$1.58 billion	$6.98	16.33

PPG Industries has higher revenue and earnings than Sinopec Shanghai Petrochemical.

Profitability

This table compares Sinopec Shanghai Petrochemical and PPG Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sinopec Shanghai Petrochemical	N/A	N/A	N/A
PPG Industries	9.57%	21.07%	7.80%

Summary

PPG Industries beats Sinopec Shanghai Petrochemical on 9 of the 9 factors compared between the two stocks.

About Sinopec Shanghai Petrochemical

Sinopec Shanghai Petrochemical Company Limited, together with its subsidiaries, manufactures and sells petroleum and chemical products in the People’s Republic of China. The company operates through Petroleum Products, Intermediate Petrochemicals, Synthetic Fibers, Resins and Plastics, and Trading of Petrochemical Products segments. It offers ethylene oxide , triethylene glycol , isoprene, isopentene, industrial butadiene, ethylene, industrial ethylene glycol, vinyl acetate, piperylene, amyl hydride, petroleum benzene and paraxylene, butylene, industrial diethylene glycol, poly, dicyclopentadiene, polymer grade propylene, petroleum toluene, carbon black feed oil, industrial crude aromatics, and cracking naphthalene fraction chemicals. In addition, the company offers refining products comprising of gasoline, naphtha, petroleum coke, jet fuel, sulfur, LPG asphalt, diesel, and fuel oil. Further, it provides polyester chip and staple, acrylic fiber, high- and low-pressure polyethylene, and bottled champ products. The company was founded in 1972 and is based in Shanghai, the People’s Republic of China. Sinopec Shanghai Petrochemical Company Limited operates as a subsidiary of China Petroleum & Chemical Corporation.

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.