Nutrien (NYSE:NTR – Get Free Report) and Mitsubishi Chemical Group (OTCMKTS:MTLHF – Get Free Report) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Institutional and Insider Ownership
63.1% of Nutrien shares are owned by institutional investors. Comparatively, 14.7% of Mitsubishi Chemical Group shares are owned by institutional investors. 3.1% of Nutrien shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Nutrien and Mitsubishi Chemical Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nutrien | $26.89 billion | 1.21 | $2.27 billion | $4.94 | 13.82 |
| Mitsubishi Chemical Group | N/A | N/A | N/A | $25.94 | 0.24 |
Nutrien has higher revenue and earnings than Mitsubishi Chemical Group. Mitsubishi Chemical Group is trading at a lower price-to-earnings ratio than Nutrien, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Nutrien and Mitsubishi Chemical Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nutrien | 1 | 3 | 17 | 0 | 2.76 |
| Mitsubishi Chemical Group | 0 | 0 | 0 | 0 | 0.00 |
Nutrien currently has a consensus price target of $81.58, indicating a potential upside of 19.51%. Given Nutrien’s stronger consensus rating and higher probable upside, research analysts plainly believe Nutrien is more favorable than Mitsubishi Chemical Group.
Profitability
This table compares Nutrien and Mitsubishi Chemical Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nutrien | 8.44% | 8.88% | 4.27% |
| Mitsubishi Chemical Group | N/A | N/A | N/A |
Dividends
Nutrien pays an annual dividend of $2.20 per share and has a dividend yield of 3.2%. Mitsubishi Chemical Group pays an annual dividend of $9.56 per share and has a dividend yield of 152.6%. Nutrien pays out 44.5% of its earnings in the form of a dividend. Mitsubishi Chemical Group pays out 36.8% 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. Nutrien has increased its dividend for 7 consecutive years. Mitsubishi Chemical Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Nutrien beats Mitsubishi Chemical Group on 11 of the 14 factors compared between the two stocks.
About Nutrien
Nutrien Ltd. provides crop inputs and services. The company operates through four segments: Retail, Potash, Nitrogen, and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seeds, and merchandise products. The Potash segment provides granular and standard potash products. The Nitrogen segment offers ammonia, urea, environmentally smart nitrogen, nitrogen solutions, nitrates, and sulfates. The Phosphate segment provides solid fertilizer, liquid fertilizer, and industrial and feed products. In addition, it provides services directly to growers through a network of farm centers in North America, South America, and Australia. The company is headquartered in Saskatoon, Canada.
About Mitsubishi Chemical Group
Mitsubishi Chemical Group Corporation provides performance products, chemicals, industrial gases, health care products, and other products in Japan and internationally. The company offers polyester films for various applications, including optical materials, for electronic displays; industrial materials for electronic components, automotive parts, and medical equipment; and packaging materials for food and other products. It also provides high-performance engineering plastics, as well as advanced solutions; industrial materials, such as MMA, petrochemicals, carbon products, and industrial gages; and pharma and regenerative medicines. In addition, the company offers engineering, transportation, and warehousing services. Mitsubishi Chemical Group Corporation was incorporated in 2005 and is headquartered in Tokyo, Japan.
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