Eastman Chemical (NYSE:EMN – Get Free Report) and Origin Materials (NASDAQ:ORGN – Get Free Report) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Valuation and Earnings
This table compares Eastman Chemical and Origin Materials”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eastman Chemical | $8.75 billion | 0.81 | $474.00 million | $3.84 | 16.23 |
| Origin Materials | $13.97 million | 0.37 | -$249.70 million | ($47.83) | -0.02 |
Eastman Chemical has higher revenue and earnings than Origin Materials. Origin Materials is trading at a lower price-to-earnings ratio than Eastman Chemical, indicating that it is currently the more affordable of the two stocks.
Dividends
Eastman Chemical pays an annual dividend of $3.36 per share and has a dividend yield of 5.4%. Origin Materials pays an annual dividend of $0.32 per share and has a dividend yield of 33.7%. 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. Origin Materials pays out -0.7% of its earnings in the form of a dividend. Eastman Chemical has raised its dividend for 15 consecutive years. Origin Materials is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Eastman Chemical and Origin Materials’ 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% |
| Origin Materials | -1,742.04% | -120.66% | -99.50% |
Analyst Ratings
This is a breakdown of recent recommendations for Eastman Chemical and Origin Materials, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eastman Chemical | 0 | 10 | 6 | 0 | 2.38 |
| Origin Materials | 1 | 0 | 0 | 0 | 1.00 |
Eastman Chemical currently has a consensus target price of $74.64, suggesting a potential upside of 19.79%. Given Eastman Chemical’s stronger consensus rating and higher possible upside, equities analysts plainly believe Eastman Chemical is more favorable than Origin Materials.
Insider & Institutional Ownership
83.7% of Eastman Chemical shares are held by institutional investors. Comparatively, 29.9% of Origin Materials shares are held by institutional investors. 2.6% of Eastman Chemical shares are held by insiders. Comparatively, 2.8% of Origin Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Eastman Chemical has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Origin Materials has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
Summary
Eastman Chemical beats Origin Materials on 13 of the 17 factors compared between the two stocks.
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 Origin Materials
Origin Materials, Inc., together with its subsidiaries, operates as a carbon-negative materials company. The company develops a proprietary biomass conversion platform to convert biomass, or plant-based carbon into building block chemicals chloromethylfurfural and hydrothermal carbon, as well as other oils and extractives and other co-products. Origin Materials, Inc. is headquartered in West Sacramento, California.
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