Minerals Technologies (NYSE:MTX – Get Free Report) and Asahi Kasei (OTCMKTS:AHKSY – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Risk & Volatility
Minerals Technologies has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Asahi Kasei has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Minerals Technologies and Asahi Kasei, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Minerals Technologies | 1 | 1 | 1 | 0 | 2.00 |
| Asahi Kasei | 0 | 1 | 0 | 1 | 3.00 |
Profitability
This table compares Minerals Technologies and Asahi Kasei’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Minerals Technologies | -3.13% | 10.63% | 5.20% |
| Asahi Kasei | 6.10% | 8.60% | 4.35% |
Dividends
Minerals Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.7%. Asahi Kasei pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. Minerals Technologies pays out -22.1% of its earnings in the form of a dividend. Asahi Kasei pays out 17.4% 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. Minerals Technologies has raised its dividend for 2 consecutive years.
Valuation & Earnings
This table compares Minerals Technologies and Asahi Kasei”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Minerals Technologies | $2.07 billion | 1.08 | -$18.40 million | ($2.17) | -33.21 |
| Asahi Kasei | $20.42 billion | 0.68 | $1.05 billion | $1.84 | 10.91 |
Asahi Kasei has higher revenue and earnings than Minerals Technologies. Minerals Technologies is trading at a lower price-to-earnings ratio than Asahi Kasei, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
97.3% of Minerals Technologies shares are held by institutional investors. 3.7% of Minerals Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Minerals Technologies beats Asahi Kasei on 10 of the 18 factors compared between the two stocks.
About Minerals Technologies
Minerals Technologies Inc. develops, produces, and markets various mineral, mineral-based, and related systems and services. The company operates through two segments, Consumer & Specialties, and Engineered Solutions segments. The Consumer & Specialties segment offers household and personal care products, such as pet litter, personal care, fabric care, edible oil and other fluid purification, animal health, and agricultural products; and specialty additives products, including precipitated calcium carbonate and ground calcium carbonate products that are used in the paper, paperboard, and fiber based packaging industries, as well as automotive, construction, and table and food applications. This segment produces limestone and dolomitic limestone used in construction, automotive, and consumer markets for packaging applications. The Engineered Solutions segment provides high-temperature technology products consisting of custom-blended mineral and non-mineral products for casting auto parts, farm and construction equipment, oil and gas production equipment, power generation turbine castings, and rail car components; and environmental and infrastructure products comprising geosynthetic clay lining systems, vapor intrusion mitigation products, sub surface waterproofing systems, green roofs, wastewater remediation, drinking water purification technologies, and drilling products. In addition, this segment provides chromite products; gunnable monolithic refractory products and application systems; monolithic refractory materials and pre-cast refractory shapes; refractory shapes and linings; carbon composite and pyrolitic graphite; and filtration and well testing services. It markets its products primarily through its direct sales force, as well as regional distributors. The company serves in the United States, Canada, Latin America, Europe, Africa, and Asia. Minerals Technologies Inc. was incorporated in 1968 and is headquartered in New York, New York.
About Asahi Kasei
Asahi Kasei Corporation manufactures and sells chemicals. It offers caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, acetonitrile, methacrylonitrile, cyclohexyl methacrylate, polyethylenes, polyethylenes powder, PMMA resin, polystyrene, polybutadiene rubbers, styrene/butadiene rubbers, clear styrenic copolymer, styrenic thermoplastic elastomer, hydrogenated styrenic elastomers, membranes and systems, functional materials, foams, purging compound, polyisocyanates, polycarbonatediol, aluminum paste, latex, photopolymers and platemaking systems, films, cyclohexanol, cyclohexane, and cyclohexene. The company also offers lithium-ion battery and lead-acid battery separators, plastic optical fibers, artificial suede, nylon 66 filament, polyamide 66, polyacetal, polyphenyene ether, polypropylene compounds, 3D cubic knitted fabric, noise suppression sheets, audio devices, photosensitive polyimide/PBO precursor, latent hardeners, glass fabrics, specialty products, explosion-bonded metal clads, lining fabrics, cupro and stretch fibers, oil-water separators, cellulose nanobeads, and flame-resistant and synthetic fiber; magnetic, current, and gas sensors; deodorizing, spunbond, cupro, multifunctional, and heat-press formable thermoplastic nonwoven; and ecorise, biocradle, and bemliese products. It provides bags and containers; cooking products; cleaners; plastic packet cutting products; cyclohexyl methacrylate, bonded anchors, and microcrystalline cellulose; pharmaceuticals and diagnostic reagents, dialyzers, therapeutic apheresis, virus removal filters, defibrillators, AEDs, automated CPRs, fluid resuscitation pumps, wearable defibrillators, temperature management systems, and data solutions; construction materials; and remodeling services, as well as develops homes and apartments. The company was founded in 1922 and is headquartered in Tokyo, Japan.
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