Quaker Houghton (NYSE:KWR) vs. Nissan Chemical (OTCMKTS:NNCHY) Head-To-Head Analysis

Quaker Houghton (NYSE:KWR) and Nissan Chemical (OTCMKTS:NNCHY) are both mid-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Risk and Volatility

Quaker Houghton has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Nissan Chemical has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Quaker Houghton and Nissan Chemical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaker Houghton	0	1	3	0	2.75
Nissan Chemical	0	0	0	0	0.00

Quaker Houghton presently has a consensus target price of $150.75, indicating a potential upside of 7.44%. Given Quaker Houghton’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Quaker Houghton is more favorable than Nissan Chemical.

Valuation & Earnings

This table compares Quaker Houghton and Nissan Chemical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaker Houghton	$1.84 billion	1.33	$116.64 million	($0.43)	-326.30
Nissan Chemical	$1.65 billion	3.12	$284.08 million	$2.23	16.91

Nissan Chemical has lower revenue, but higher earnings than Quaker Houghton. Quaker Houghton is trading at a lower price-to-earnings ratio than Nissan Chemical, indicating that it is currently the more affordable of the two stocks.

Dividends

Quaker Houghton pays an annual dividend of $1.94 per share and has a dividend yield of 1.4%. Nissan Chemical pays an annual dividend of $1.18 per share and has a dividend yield of 3.1%. Quaker Houghton pays out -451.2% of its earnings in the form of a dividend. Nissan Chemical pays out 52.9% 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. Quaker Houghton has raised its dividend for 17 consecutive years.

Profitability

This table compares Quaker Houghton and Nissan Chemical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quaker Houghton	-0.39%	8.35%	4.25%
Nissan Chemical	17.30%	18.88%	13.47%

Insider & Institutional Ownership

77.5% of Quaker Houghton shares are owned by institutional investors. 1.1% of Quaker Houghton shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Quaker Houghton beats Nissan Chemical on 9 of the 17 factors compared between the two stocks.

About Quaker Houghton

Quaker Chemical Corporation, together with its subsidiaries, develops, produces, and markets various formulated specialty chemical products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

About Nissan Chemical

Nissan Chemical Corporation engages in the chemicals, performance materials, agricultural chemicals, and pharmaceuticals businesses in Japan and internationally. The company provides high purity chemicals; AdBlue, an urea solution; ammonia, sulfuric, and nitric acid, as well as concrete and civil engineering-related products; TEPIC, an epoxy compound; Melamine Cyanurate, a salt of melamine and iso cyanuric acid; TEPIC-VL, a liquid epoxy compound; TEPIC-FL, a liquid epoxy material; FOLDI-E101, an epoxy reactive diluent; Ecopromote, a nucleating agents for PLA; Nissan Reishi, a health food; phenylphosphonic acid; HI-LITE, a chlorinated isocyanulate; OPTBEADS, a melamine-formaldehyde resin and silica; and FINEOXOCOL, a saturated fatty alcohol and acid. It also offers performance materials comprising display, semiconductor, and inorganic materials; agricultural chemicals, such as herbicides, insecticides, fungicides, etc. for use on agricultural land, as well as in golf courses and parks; and drug substances for antiparasite drugs for animals. In addition, the company provides pharmaceutical products, such as LIVALO, a antihypercholesterolemic agent; LANDEL and FINTE, a long-acting calcium channel blocker; APIs and intermediaries; and manufacturing and process researching services for pharmaceutical ingredients. Further, it develops healthcare, information and communication materials, and environmental and energy materials. The company was formerly known as Nissan Chemical Industries, Ltd. and changed its name to Nissan Chemical Corporation in July 2018. Nissan Chemical Corporation was founded in 1887 and is headquartered in Tokyo, Japan.