Contrasting Ashland (NYSE:ASH) and Asahi Glass (OTCMKTS:ASGLY)

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

Insider and Institutional Ownership

94.0% of Ashland shares are held by institutional investors. 1.3% of Ashland shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ashland	0.21%	8.17%	3.36%
Asahi Glass	2.88%	3.60%	2.10%

Dividends

Ashland pays an annual dividend of $1.68 per share and has a dividend yield of 2.2%. Asahi Glass pays an annual dividend of $0.16 per share and has a dividend yield of 2.6%. Ashland pays out 2,100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Asahi Glass pays out 42.1% of its earnings in the form of a dividend. Ashland has increased its dividend for 16 consecutive years. Asahi Glass is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and target prices for Ashland and Asahi Glass, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ashland	0	4	7	0	2.64
Asahi Glass	0	1	0	0	2.00

Ashland currently has a consensus price target of $75.30, suggesting a potential downside of 1.59%. Given Ashland’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ashland is more favorable than Asahi Glass.

Risk & Volatility

Ashland has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Asahi Glass has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ashland and Asahi Glass”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ashland	$1.86 billion	1.88	$4.00 million	$0.08	956.42
Asahi Glass	$13.77 billion	0.49	$463.39 million	$0.38	16.32

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

Summary

Ashland beats Asahi Glass on 10 of the 17 factors compared between the two stocks.

About Ashland

Ashland Inc. is a specialty chemicals company that develops and supplies ingredients and additives for businesses across a range of industries. Its products include pharmaceutical ingredients and excipients, personal care ingredients, and specialty additives used in coatings, construction materials and other applications. The company traces its roots to 1924, when it was established as Ashland Refining Company in Kentucky. Over time, Ashland shifted from its origins in oil refining toward specialty chemicals and ingredients.

About Asahi Glass

Asahi Glass, now known as AGC Inc., is a Japanese materials manufacturer founded in 1907. The company changed its corporate name to AGC in 2018 and serves customers in industries including construction, automotive, electronics, and healthcare. Its products include architectural and automotive glass, glass for display applications, chemicals, ceramics, and other advanced materials. AGC also provides life-science services, including contract development and manufacturing for pharmaceutical and biotechnology companies.