Eastman Chemical (NYSE:EMN – Get Free Report) is one of 295 public companies in the “Chemicals” industry, but how does it weigh in compared to its competitors? We will compare Eastman Chemical to related businesses based on the strength of its profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
Dividends
Eastman Chemical pays an annual dividend of $3.36 per share and has a dividend yield of 5.0%. 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. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 109.0% of their earnings in the form of a dividend. Eastman Chemical has increased its dividend for 15 consecutive years. Eastman Chemical is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Eastman Chemical and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Eastman Chemical | $8.75 billion | $474.00 million | 17.34 |
| Eastman Chemical Competitors | $6.36 billion | $222.31 million | -7.89 |
Eastman Chemical has higher revenue and earnings than its competitors. Eastman Chemical is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Profitability
This table compares Eastman Chemical and its competitors’ 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% |
| Eastman Chemical Competitors | -61.10% | 1.20% | -1.42% |
Insider and Institutional Ownership
83.7% of Eastman Chemical shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are owned by institutional investors. 2.6% of Eastman Chemical shares are owned by insiders. Comparatively, 14.1% of shares of all “Chemicals” companies are owned by 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.
Volatility & Risk
Eastman Chemical has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Eastman Chemical’s competitors have a beta of 1.25, indicating that their average share price is 25% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for Eastman Chemical and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eastman Chemical | 1 | 9 | 6 | 0 | 2.31 |
| Eastman Chemical Competitors | 3233 | 12144 | 14070 | 515 | 2.40 |
Eastman Chemical presently has a consensus target price of $74.64, suggesting a potential upside of 12.09%. As a group, “Chemicals” companies have a potential upside of 7.08%. Given Eastman Chemical’s higher probable upside, equities research analysts clearly believe Eastman Chemical is more favorable than its competitors.
Summary
Eastman Chemical beats its competitors on 10 of the 15 factors compared.
Eastman Chemical Company Profile
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.
Receive News & Ratings for Eastman Chemical Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eastman Chemical and related companies with MarketBeat.com's FREE daily email newsletter.
