Asahi Kasei (AHKSY) & Its Competitors Critical Review

Asahi Kasei (OTCMKTS:AHKSY) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it weigh in compared to its rivals? We will compare Asahi Kasei to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Institutional and Insider Ownership

48.0% of shares of all “Chemicals” companies are owned by institutional investors. 14.1% of shares of all “Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Asahi Kasei and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Asahi Kasei	$20.42 billion	$1.05 billion	10.91
Asahi Kasei Competitors	$7.99 billion	$222.31 million	-3.55

Asahi Kasei has higher revenue and earnings than its rivals. Asahi Kasei is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Asahi Kasei and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asahi Kasei	6.10%	8.58%	4.31%
Asahi Kasei Competitors	-61.06%	1.32%	-1.40%

Dividends

Asahi Kasei pays an annual dividend of $0.33 per share and has a dividend yield of 1.6%. Asahi Kasei pays out 17.9% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 108.6% of their earnings in the form of a dividend.

Risk and Volatility

Asahi Kasei has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Asahi Kasei’s rivals have a beta of 1.25, meaning that their average stock price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Asahi Kasei and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asahi Kasei	0	2	0	0	2.00
Asahi Kasei Competitors	3239	12184	14102	515	2.40

As a group, “Chemicals” companies have a potential upside of 6.49%. Given Asahi Kasei’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Asahi Kasei has less favorable growth aspects than its rivals.

Summary

Asahi Kasei rivals beat Asahi Kasei on 8 of the 15 factors compared.

Asahi Kasei Company Profile

Asahi Kasei Corporation manufactures and sells chemicals. It offers caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, acetonitrile, methacrylonitrile, cyclohexyl methacrylate, polyethylenes, polyethylenes powder, PMMA resin, polystyrene, polybutadiene rubbers, styrene/butadiene rubbers, clear styrenic copolymer, styrenic thermoplastic elastomer, hydrogenated styrenic elastomers, membranes and systems, functional materials, foams, purging compound, polyisocyanates, polycarbonatediol, aluminum paste, latex, photopolymers and platemaking systems, films, cyclohexanol, cyclohexane, and cyclohexene. The company also offers lithium-ion battery and lead-acid battery separators, plastic optical fibers, artificial suede, nylon 66 filament, polyamide 66, polyacetal, polyphenyene ether, polypropylene compounds, 3D cubic knitted fabric, noise suppression sheets, audio devices, photosensitive polyimide/PBO precursor, latent hardeners, glass fabrics, specialty products, explosion-bonded metal clads, lining fabrics, cupro and stretch fibers, oil-water separators, cellulose nanobeads, and flame-resistant and synthetic fiber; magnetic, current, and gas sensors; deodorizing, spunbond, cupro, multifunctional, and heat-press formable thermoplastic nonwoven; and ecorise, biocradle, and bemliese products. It provides bags and containers; cooking products; cleaners; plastic packet cutting products; cyclohexyl methacrylate, bonded anchors, and microcrystalline cellulose; pharmaceuticals and diagnostic reagents, dialyzers, therapeutic apheresis, virus removal filters, defibrillators, AEDs, automated CPRs, fluid resuscitation pumps, wearable defibrillators, temperature management systems, and data solutions; construction materials; and remodeling services, as well as develops homes and apartments. The company was founded in 1922 and is headquartered in Tokyo, Japan.