Resonac (OTCMKTS:SHWDY – Get Free Report) and Cabot (NYSE:CBT – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Risk and Volatility
Resonac has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Cabot has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
Earnings and Valuation
This table compares Resonac and Cabot”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Resonac | $9.01 billion | 2.30 | $194.51 million | $1.23 | 91.03 |
| Cabot | $3.71 billion | 1.23 | $331.00 million | $5.29 | 16.73 |
Cabot has lower revenue, but higher earnings than Resonac. Cabot is trading at a lower price-to-earnings ratio than Resonac, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Resonac and Cabot, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Resonac | 0 | 0 | 0 | 2 | 4.00 |
| Cabot | 1 | 4 | 2 | 0 | 2.14 |
Cabot has a consensus price target of $85.80, suggesting a potential downside of 3.03%. Given Cabot’s higher possible upside, analysts plainly believe Cabot is more favorable than Resonac.
Insider & Institutional Ownership
93.2% of Cabot shares are held by institutional investors. 3.1% of Cabot shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Resonac and Cabot’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Resonac | 2.59% | 4.89% | 1.65% |
| Cabot | 7.97% | 21.33% | 9.48% |
Dividends
Resonac pays an annual dividend of $0.55 per share and has a dividend yield of 0.5%. Cabot pays an annual dividend of $1.89 per share and has a dividend yield of 2.1%. Resonac pays out 44.7% of its earnings in the form of a dividend. Cabot pays out 35.7% 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. Cabot has raised its dividend for 14 consecutive years. Cabot is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Cabot beats Resonac on 13 of the 18 factors compared between the two stocks.
About Resonac
Resonac Holdings Corporation operates as a chemical company in Japan, China, rest of Asia, and internationally. It operates through Semiconductor and Electronic Materials, Mobility, Innovation Enabling Materials, and Chemicals segments. The company offers gases and solvents, abatement systems and surface treatments, CMP slurries, and anti-charging materials; semiconductor-related materials, display and sensor-related materials, and films; base and photosensitive materials for PWBs; hard disks, SiCs, and optical semiconductors for use as electronic device components; and molded plastics/sheet-formed, powder metal, and aluminum products for automotives. It also provides lithium-ion batteries and mechanical carbon; ceramics, resins, cosmetic ingredients/medicinal additives, monomers, adhesives, tapes, and chromatography products; and elastomers. In addition, the company offers polyimides; HD media; friction materials; aluminum gravity casting products; packaging/containers for food, medicine, and electronics; electrical insulating epoxy resin molded products; zipper bags and tapes; titanium oxide and alumina; and elastic polishing grindstone. Further, it provides polypropylene and polyethylene; liquefied carbon dioxide, dry ice, and gas-related equipment; liquefied oxygen, nitrogen, and argon; molecular sieve; graphite electrodes; plasters, fireproofing pipes, and wall sidings; cement and moisture removal sheets; industrial materials; and FRP, coated sand, and separating mediums. Additionally, the company engages in the contract development and manufacturing of regenerative medicines; leasing of personal computers and other business equipment; outsourcing of salary, welfare, and finance-related business; and synthesis, analysis, and SDS preparation services. The company was formerly known as Showa Denko K.K. and changed its name to Resonac Holdings Corporation in January 2023. Resonac Holdings Corporation was incorporated in 1939 and is headquartered in Tokyo, Japan.
About Cabot
Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions. The company also provides specialty carbons for use in inks, coatings, plastics, adhesives, toners, batteries, and displays; conductive additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; and fumed alumina for use in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries. In addition, it offers aerogel, a hydrophobic, silica-based particle to use in various thermal insulation and specialty chemical applications; masterbatch and conductive compound products that are used in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; and inkjet colorants for inkjet printing applications. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.
Receive News & Ratings for Resonac Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Resonac and related companies with MarketBeat.com's FREE daily email newsletter.
