Eastman Chemical (NYSE:EMN – Get Free Report) and Flexible Solutions International (NYSE:FSI – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Profitability
This table compares Eastman Chemical and Flexible Solutions International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eastman Chemical | 4.99% | 9.46% | 3.78% |
| Flexible Solutions International | 10.80% | 10.61% | 7.32% |
Dividends
Eastman Chemical pays an annual dividend of $3.36 per share and has a dividend yield of 4.9%. Flexible Solutions International pays an annual dividend of $0.15 per share and has a dividend yield of 2.7%. Eastman Chemical pays out 87.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Flexible Solutions International pays out -62.5% of its earnings in the form of a dividend. Eastman Chemical has increased its dividend for 15 consecutive years. Eastman Chemical is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eastman Chemical | 0 | 8 | 6 | 0 | 2.43 |
| Flexible Solutions International | 0 | 1 | 0 | 1 | 3.00 |
Eastman Chemical currently has a consensus price target of $79.17, indicating a potential upside of 16.33%. Given Eastman Chemical’s higher probable upside, research analysts clearly believe Eastman Chemical is more favorable than Flexible Solutions International.
Volatility and Risk
Eastman Chemical has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Flexible Solutions International has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
Valuation and Earnings
This table compares Eastman Chemical and Flexible Solutions International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eastman Chemical | $8.75 billion | 0.89 | $474.00 million | $3.84 | 17.72 |
| Flexible Solutions International | $35.58 million | 2.03 | $2.78 million | ($0.24) | -23.54 |
Eastman Chemical has higher revenue and earnings than Flexible Solutions International. Flexible Solutions International is trading at a lower price-to-earnings ratio than Eastman Chemical, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
83.7% of Eastman Chemical shares are held by institutional investors. Comparatively, 54.3% of Flexible Solutions International shares are held by institutional investors. 2.6% of Eastman Chemical shares are held by insiders. Comparatively, 35.8% of Flexible Solutions International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
About Eastman Chemical
Eastman Chemical Company operates as a specialty materials company in the United States, China, and internationally. The company's Additives & Functional Products segment offers amine derivative-based building blocks, intermediates for surfactants, metam-based soil fumigants, and organic acid-based solutions; specialty coalescent and solvents, paint additives, and specialty polymers; and heat transfer and aviation fluids. It serves transportation, personal care, wellness, food, feed, agriculture, building and construction, water treatment, energy, consumables, durables, and electronics markets. Its Advanced Materials segment provides copolyesters, cellulosic biopolymers, cellulose esters, polyvinyl butyral sheets, and window and protective films for value-added end uses in the transportation, durables, electronics, building and construction, medical and pharma, and consumables markets. The company's Chemical Intermediates segment offers olefin and acetyl derivatives, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non-phthalate plasticizers for industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment provides cellulose acetate tow, triacetin, cellulose acetate flake, acetic acid, and acetic anhydride for use in filtration media primarily cigarette filters; natural and solution dyed acetate yarns, and staple fiber for use in consumables, and health and wellness markets; and wet-laid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, and aerospace markets. The company was founded in 1920 and is headquartered in Kingsport, Tennessee.
About Flexible Solutions International
Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; TPAs for cleaning products to prevents the re-deposition of dirt onto the surfaces; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. The company was incorporated in 1991 and is headquartered in Taber, Canada.
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