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

Profitability

This table compares Eastman Chemical and its peers’ 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 -29.86% 24.06% 5.26%

Dividends

Eastman Chemical pays an annual dividend of $2.04 per share and has a dividend yield of 2.2%. 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 62.9% of their earnings in the form of a dividend. Eastman Chemical has increased its dividend for 5 consecutive years. Eastman Chemical is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings for Eastman Chemical and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eastman Chemical 0 4 6 0 2.60
Eastman Chemical Competitors 98 751 1135 32 2.55

Eastman Chemical currently has a consensus target price of $91.89, indicating a potential upside of 0.98%. As a group, “Commodity Chemicals” companies have a potential downside of 3.20%. Given Eastman Chemical’s stronger consensus rating and higher probable upside, research analysts clearly believe Eastman Chemical is more favorable than its peers.

Insider and Institutional Ownership

82.1% of Eastman Chemical shares are owned by institutional investors. Comparatively, 69.0% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 1.1% of Eastman Chemical shares are owned by company insiders. Comparatively, 8.2% of shares of all “Commodity Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

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

Valuation and Earnings

This table compares Eastman Chemical and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Eastman Chemical $9.20 billion $2.15 billion 14.40
Eastman Chemical Competitors $4.15 billion $892.82 million 34.30

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

Summary

Eastman Chemical beats its peers on 11 of the 15 factors compared.

Eastman Chemical Company Profile

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.

Receive News & Ratings for Eastman Chemical Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eastman Chemical Company and related companies with Analyst Ratings Network's FREE daily email newsletter.