Analyzing Huntsman (NYSE:HUN) and Denka (OTCMKTS:DENKF)

Denka (OTCMKTS:DENKF) and Huntsman (NYSE:HUN) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Insider and Institutional Ownership

84.8% of Huntsman shares are owned by institutional investors. 5.6% of Huntsman shares 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Denka and Huntsman, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Denka	0	0	0	0	N/A
Huntsman	2	5	3	0	2.10

Huntsman has a consensus price target of $26.55, indicating a potential upside of 11.63%. Given Huntsman’s higher possible upside, analysts clearly believe Huntsman is more favorable than Denka.

Profitability

This table compares Denka and Huntsman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Denka	N/A	N/A	N/A
Huntsman	1.65%	1.92%	0.96%

Valuation & Earnings

This table compares Denka and Huntsman’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Denka	N/A	N/A	N/A	N/A	N/A
Huntsman	$6.11 billion	0.67	$101.00 million	$0.53	44.55

Huntsman has higher revenue and earnings than Denka.

Summary

Huntsman beats Denka on 8 of the 8 factors compared between the two stocks.

About Denka

Denka Company Limited manufactures and sells organic and inorganic materials to electronic materials and pharmaceuticals in Japan and internationally. The company's Electronics & Innovative Products division provides conductive agents for lithium for lithium-ion batteries, thermal materials and substrates, functional ceramics, films, and tapes. Its Life Innovation division works to improve people's life in the fields of prevention, diagnosis, and treatment, including influenza vaccines; test reagents, such as rapid testing kits for COVID-19; and macromolecular hyaluronate preparations. The company's Elastomers & Infrastructure Solutions division include functional elastomers, cement and special cement additives, fertilizers, agricultural products. Its Polymer Solutions division consist of styrene-based resins, food packaging sheets, and synthetic fiber for wigs, as well as poval and other chemical products. The company was formerly known as Denki Kagaku Kogyo Kabushiki Kaisha and changed its name to Denka Company Limited in October 2015. Denka Company Limited was incorporated in 1915 and is headquartered in Tokyo, Japan.

About Huntsman

Huntsman Corporation manufactures and sells diversified organic chemical products worldwide. The company operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyether and polyester polyols, and thermoplastic polyurethane; and aniline, benzene, nitrobenzene and other co-products. The Performance Products segment manufactures amines, such as polyetheramines, ethyleneamines, DGA Agent, JEFFCAT catalysts, and E-GRADE specialty amines and carbonates; and maleic anhydrides. The Advanced Materials segment offers epoxy, phenoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; and thermoset resins, curing and toughening agents, and carbon nanomaterials. The company provides pre-and post-sales technical service support to customers. Its products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, packaging, coatings and construction, power generation, and refining, as well as serves the elastomers, insulation, footwear, furniture, industrial, oil and gas, liquid natural gas transport, printed circuit boards, consumer, appliances, electrical power transmission and distribution, recreational sports equipment, and medical appliances markets. The company sells its products through a network of distributors and agents. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.