Contrasting RENAULT S A/ADR (OTCMKTS:RNLSY) and BRENNTAG AG/ADR (OTCMKTS:BNTGY)

BRENNTAG AG/ADR (OTCMKTS:BNTGY) and RENAULT S A/ADR (OTCMKTS:RNLSY) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

0.2% of BRENNTAG AG/ADR shares are held by institutional investors. Comparatively, 0.1% of RENAULT S A/ADR shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

BRENNTAG AG/ADR has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, RENAULT S A/ADR has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares BRENNTAG AG/ADR and RENAULT S A/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BRENNTAG AG/ADR $14.82 billion 0.54 $544.32 million $0.70 14.76
RENAULT S A/ADR $67.81 billion 0.27 $3.90 billion $2.87 4.36

RENAULT S A/ADR has higher revenue and earnings than BRENNTAG AG/ADR. RENAULT S A/ADR is trading at a lower price-to-earnings ratio than BRENNTAG AG/ADR, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for BRENNTAG AG/ADR and RENAULT S A/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BRENNTAG AG/ADR 0 1 1 0 2.50
RENAULT S A/ADR 1 2 1 1 2.40

Dividends

BRENNTAG AG/ADR pays an annual dividend of $0.17 per share and has a dividend yield of 1.6%. RENAULT S A/ADR pays an annual dividend of $0.62 per share and has a dividend yield of 5.0%. BRENNTAG AG/ADR pays out 24.3% of its earnings in the form of a dividend. RENAULT S A/ADR pays out 21.6% 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. RENAULT S A/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares BRENNTAG AG/ADR and RENAULT S A/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BRENNTAG AG/ADR 3.64% 13.99% 5.79%
RENAULT S A/ADR N/A N/A N/A

Summary

BRENNTAG AG/ADR beats RENAULT S A/ADR on 8 of the 14 factors compared between the two stocks.

About BRENNTAG AG/ADR

Brenntag AG, a chemical distribution company, purchases and supplies industrial and specialty chemicals in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally. The company also provides value added services. It serves customers in various end-market industries, such as adhesives, paints, oil and gas, food, water treatment, personal care, and pharmaceuticals. The company was founded in 1874 and is headquartered in Essen, Germany.

About RENAULT S A/ADR

Renault SA designs, manufactures, sells, and distributes vehicles. The company operates through Automotive, Sales Financing, and AVTOVAZ segments. It offers passenger and light commercial, and electric vehicles primarily under the Renault, Dacia, Renault Samsung Motors, Alpine, and LADA, as well as under the Nissan, Datsun, and Infiniti brands. The company also sells powertrains and used vehicles, as well as spare parts; and provides various services, including collecting commissions for loans, sales financing, rental, maintenance, and service contracts. In addition, it offers finance for the purchasing inventories of new and used vehicles, and replacement parts; designs, produces, and sells converted vehicles; provides Renault EASY CONNECT for Fleet, a connected service for business users; and produces driving aids, such as steering-wheel mounted accelerators and brakes, multifunction remote control units to operate indicators, lights and horns, pedal transfers, etc., as well as manual or electric swivel seats. It also exports its products worldwide. The company was founded in 1898 and is based in Boulogne-Billancourt, France.

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