Comparing Brenntag (OTCMKTS:BNTGY) and Akzo Nobel (OTCMKTS:AKZOY)

Akzo Nobel (OTCMKTS:AKZOY) and Brenntag (OTCMKTS:BNTGY) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

0.4% of Akzo Nobel shares are owned by institutional investors. 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.

Valuation & Earnings

This table compares Akzo Nobel and Brenntag”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akzo Nobel	$11.59 billion	0.99	$586.50 million	$0.10	223.50
Brenntag	$17.57 billion	0.47	$580.22 million	$0.64	17.79

Akzo Nobel has higher earnings, but lower revenue than Brenntag. Brenntag is trading at a lower price-to-earnings ratio than Akzo Nobel, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Akzo Nobel and Brenntag’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akzo Nobel	0.53%	13.51%	4.39%
Brenntag	2.62%	9.19%	3.69%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Akzo Nobel and Brenntag, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akzo Nobel	1	0	2	1	2.75
Brenntag	2	6	0	0	1.75

Brenntag has a consensus price target of $12.80, suggesting a potential upside of 12.42%. Given Brenntag’s higher possible upside, analysts clearly believe Brenntag is more favorable than Akzo Nobel.

Volatility & Risk

Akzo Nobel has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Brenntag has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Dividends

Akzo Nobel pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Brenntag pays an annual dividend of $0.27 per share and has a dividend yield of 2.4%. Akzo Nobel pays out 240.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brenntag pays out 42.2% of its earnings in the form of a dividend. Brenntag is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Akzo Nobel beats Brenntag on 10 of the 16 factors compared between the two stocks.

About Akzo Nobel

Akzo Nobel N.V. engages in the production and sale of paints and coatings worldwide. The company operates through two segments: Decorative Paints and Performance Coatings. It offers decorative paints, including paints, lacquers, and varnishes; and a range of mixing machines and color concepts for the building and renovation industry, as well as specialty coatings. The company also provides performance coatings that protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. It offers its products under AkzoNobel, Alabastine, Alba, Andercol, Apla, Armstead Trade, Astral, Astral Batiment, AwlGrip, Brikol, Dulux, Bruguer, Cetabever, Cetol, Chemcraft, Colourland Paints, CONSOLAN, Coral, Cromadex, Cuprinol, Dynacoat, Flexa, Glitsa, Grip-Gard, Herbol, Hammerite, International, Interlux, Innenweis, Interpon, Inca, Luxol, Levis, Lesonal, Molto, Modern Classikk, Maxilite, Mauvilac, Mason CT, Marshall, Mactra, Nordsjo, Oxirite, Protecto, Procolor, Polyfilla, Polycell, Pinotex, Pintuco, Resicoat, Relest, Sparlack, Sadolin, Sikkens, Sea Hawk, Savana, Salcomix, Trimetal, Titanlux, Taubmans, U-tech, Vpowdertech, Vivechrom, Xylazel, Xyladecor, Wanda, and Zweihorn brands. The company serves to energy, packaging, infrastructure, and shipbuilding and maintenance industries, as well as general industries, such as agricultural and construction equipment, construction-related steel, metal fabrication, pipes, appliances, and transportation. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.

About Brenntag

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.