Nippon Paint (OTCMKTS:NPCPF – Get Free Report) and FMC (NYSE:FMC – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Analyst Ratings
This is a breakdown of recent recommendations for Nippon Paint and FMC, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nippon Paint | 0 | 1 | 0 | 0 | 2.00 |
| FMC | 5 | 7 | 4 | 0 | 1.94 |
FMC has a consensus target price of $11.68, indicating a potential upside of 106.52%. Given FMC’s higher possible upside, analysts clearly believe FMC is more favorable than Nippon Paint.
Earnings & Valuation
This table compares Nippon Paint and FMC”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nippon Paint | $11.87 billion | 1.56 | $1.20 billion | $0.56 | 14.20 |
| FMC | $3.47 billion | 0.20 | -$2.24 billion | ($22.00) | -0.26 |
Nippon Paint has higher revenue and earnings than FMC. FMC is trading at a lower price-to-earnings ratio than Nippon Paint, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.9% of FMC shares are owned by institutional investors. 0.8% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Nippon Paint and FMC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nippon Paint | 10.22% | 10.65% | 4.85% |
| FMC | -84.83% | 11.35% | 2.65% |
Summary
Nippon Paint beats FMC on 8 of the 13 factors compared between the two stocks.
About Nippon Paint
Nippon Paint Holdings Co., Ltd. engages in the paints and fine chemicals businesses. The company offers automotive coatings, including paints for the automotive body, including surface treatment, electrodeposition coating, intermediate coating, and finish coating; paints for plastic components, such as bumpers and interior components; trade-use paints for construction sites, including single-family detached homes, buildings, and bridges; and industrial coatings that are used in a range of products, including construction and farming machinery, exterior construction materials, office equipment, and electric home appliances. It also provides marine coatings, such as antifouling paints; treatment agents for steel and aluminum products; and paints for DIY applications comprising wallpaper, wall cloth, and wooden, steel, and concrete materials. In addition, the company offers surface treatment products comprising functional coatings, which demonstrate various functions, such as hydrophilicity and rust prevention, and substrate films; caulking agents to fill gaps between building materials; adhesives to fix flooring and building materials; and fillers used for base coatings. Further, it is involved in the investment business; manufactures and sells surface treatment agents; and sales of paints and raw materials. The company has operations in Japan, Asia, the Americas, Oceania, and internationally. The company was formerly known as Nippon Paint Co., Ltd. and changed its name to Nippon Paint Holdings Co., Ltd. in October 2014. Nippon Paint Holdings Co., Ltd. was founded in 1879 and is headquartered in Tokyo, Japan.
About FMC
FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.
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