Novozymes A/S (OTCMKTS:NVZMY – Get Free Report) and RPM International (NYSE:RPM – Get Free Report) are both large-cap materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Dividends
Novozymes A/S pays an annual dividend of $0.39 per share and has a dividend yield of 0.6%. RPM International pays an annual dividend of $2.28 per share and has a dividend yield of 2.1%. Novozymes A/S pays out 24.7% of its earnings in the form of a dividend. RPM International pays out 42.2% 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. RPM International has raised its dividend for 51 consecutive years. RPM International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Novozymes A/S and RPM International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Novozymes A/S | $4.70 billion | 6.11 | $660.28 million | $1.58 | 43.87 |
| RPM International | $7.97 billion | 1.72 | $661.39 million | $5.40 | 19.91 |
RPM International has higher revenue and earnings than Novozymes A/S. RPM International is trading at a lower price-to-earnings ratio than Novozymes A/S, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Novozymes A/S and RPM International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Novozymes A/S | 14.70% | 6.54% | 4.34% |
| RPM International | 8.66% | 22.03% | 8.91% |
Insider & Institutional Ownership
0.0% of Novozymes A/S shares are owned by institutional investors. Comparatively, 80.9% of RPM International shares are owned by institutional investors. 1.5% of RPM International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Novozymes A/S has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, RPM International has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Novozymes A/S and RPM International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Novozymes A/S | 0 | 1 | 0 | 2 | 3.33 |
| RPM International | 0 | 4 | 12 | 0 | 2.75 |
RPM International has a consensus target price of $121.71, indicating a potential upside of 13.21%. Given RPM International’s higher possible upside, analysts clearly believe RPM International is more favorable than Novozymes A/S.
Summary
RPM International beats Novozymes A/S on 12 of the 18 factors compared between the two stocks.
About Novozymes A/S
Novozymes A/S produces and sells industrial enzymes, microorganisms, and probiotics in Denmark, rest of Europe, North America, Asia Pacific, the Middle East, Africa, Latin America, and internationally. The company offers protein solutions for the food and beverage industry. It also offers industrial hygiene, drain openers, hard surface, medical cleaning, septic tanks, ware washing, and professional laundry services. In addition, the company provides dishwashing, softener, microbial and medical cleaning services. Further, it provides corn, cotton, forages, peanuts, pulses, soybeans, wheat, small grains, bioyield, and biocontrol solutions; warm water species, recirculating aquaculture system; animal health and nutrition solutions; fiber modification, bleach boosting, deposit control, and starch modification solutions. Additionally, the company provides carbon capture, leather and textiles solutions; enzyme solutions, including corn and wheat separation, liquefaction, saccharification, filtration, isomerization, maltose, and specialties solutions; warm water species and recirculating aquaculture system solutions; human health solutions, comprising brain, oral, protective and immune, and gastrointestinal health solutions; ethanol, biodiesel, renewable diesel, education, wastewater, and sewage sludge, and renewable diesel solutions; agriculture and industry, biogas food waste, food waste, biocatalysis, cell culture, diagnostics, enzyme, and biogas solutions. Furthermore, it provides lipases, proteases, oxidoreductases, and carbohydrases. Novozymes A/S was founded in 1925 and is based in Bagsvaerd, Denmark.
About RPM International
RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.
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