Eastman Chemical (NYSE: EMN) is one of 34 publicly-traded companies in the “Commodity Chemicals” industry, but how does it compare to its competitors? We will compare Eastman Chemical to similar businesses based on the strength of its profitability, earnings, dividends, institutional ownership, valuation, analyst recommendations and risk.

Institutional and Insider Ownership

82.1% of Eastman Chemical shares are held by institutional investors. Comparatively, 69.0% of shares of all “Commodity Chemicals” companies are held by institutional investors. 1.1% of Eastman Chemical shares are held by insiders. Comparatively, 8.2% of shares of all “Commodity Chemicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Eastman Chemical and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Eastman Chemical $9.20 billion $2.15 billion 14.05
Eastman Chemical Competitors $4.16 billion $893.20 million 33.82

Eastman Chemical has higher revenue and earnings than its competitors. Eastman Chemical is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Eastman Chemical and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eastman Chemical 10.11% 22.54% 6.74%
Eastman Chemical Competitors -23.71% 24.90% 6.01%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Eastman Chemical and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eastman Chemical 0 7 5 0 2.42
Eastman Chemical Competitors 104 772 1154 34 2.54

Eastman Chemical currently has a consensus target price of $92.73, indicating a potential upside of 4.40%. As a group, “Commodity Chemicals” companies have a potential downside of 1.31%. Given Eastman Chemical’s higher possible upside, research analysts plainly believe Eastman Chemical is more favorable than its competitors.

Volatility & Risk

Eastman Chemical has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Eastman Chemical’s competitors have a beta of 1.17, suggesting that their average stock price is 17% more volatile than the S&P 500.

Dividends

Eastman Chemical pays an annual dividend of $2.04 per share and has a dividend yield of 2.3%. Eastman Chemical pays out 32.3% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.8% and pay out 63.1% of their earnings in the form of a dividend. Eastman Chemical has raised its dividend for 5 consecutive years. Eastman Chemical is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Eastman Chemical beats its competitors on 9 of the 15 factors compared.

About Eastman Chemical

Eastman Chemical Company (Eastman) is an advanced materials and specialty additives company. The Company’s segments include Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. In the AFP segment, it manufactures chemicals for products in the coatings, tires, consumables, building and construction, industrial applications, including solar energy markets, animal nutrition, care chemicals, crop protection, and energy markets. In the AM segment, it produces and markets its polymers, films, and plastics with differentiated performance properties for end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support its specialty operating segments. Its product lines in Fibers segment include Acetate Tow, Acetate Yarn and Acetyl Chemical Products.

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