Critical Contrast: Neo Performance Materials (OTCMKTS:NOPMF) vs. Kansai Paint (OTCMKTS:KSANF)

Kansai Paint (OTCMKTS:KSANF) and Neo Performance Materials (OTCMKTS:NOPMF) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Profitability

This table compares Kansai Paint and Neo Performance Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kansai Paint	N/A	N/A	N/A
Neo Performance Materials	-1.30%	3.71%	2.32%

Analyst Ratings

This is a summary of recent ratings and target prices for Kansai Paint and Neo Performance Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kansai Paint	0	0	0	0	0.00
Neo Performance Materials	0	1	1	0	2.50

Dividends

Kansai Paint pays an annual dividend of $12.35 per share and has a dividend yield of 70.6%. Neo Performance Materials pays an annual dividend of $0.29 per share and has a dividend yield of 1.9%. Kansai Paint pays out 17.3% of its earnings in the form of a dividend. Neo Performance Materials pays out -170.6% 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.

Earnings and Valuation

This table compares Kansai Paint and Neo Performance Materials”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kansai Paint	N/A	N/A	N/A	$71.19	0.25
Neo Performance Materials	$475.83 million	1.35	-$12.95 million	($0.17)	-90.72

Kansai Paint has higher earnings, but lower revenue than Neo Performance Materials. Neo Performance Materials is trading at a lower price-to-earnings ratio than Kansai Paint, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

22.0% of Kansai Paint shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Neo Performance Materials beats Kansai Paint on 6 of the 11 factors compared between the two stocks.

About Kansai Paint

Kansai Paint Co., Ltd., together with its subsidiaries, manufactures and sells paints and coatings in Japan, India, Asia, Africa, Europe, and internationally. The company offers decorative coatings for protecting exterior and interior of buildings; automotive refinish coatings for dents and scrapes; and industrial coatings that are used in agricultural machinery, special-purpose vehicles, exterior building materials, metal products, beverage cans, and precoated metals used in metallic building materials and home appliances. It also offers marine coatings; automotive coatings for vehicle's conditions and aesthetics preservation, including film coating materials; and protective coatings for bridges, power equipment, industrial plants, and steel structures, as well as offers fire-resistant coatings. In addition, the company provides coatings solutions through electronic materials coating design technologies; and develops hydrogel fluid carrier beads that are used in various types of wastewater treatment. Further, it designs, manufactures, and sells coating equipment; controls and undertakes painting works; and designs color schemes. Kansai Paint Co., Ltd. was incorporated in 1918 and is headquartered in Osaka, Japan.

About Neo Performance Materials

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.