Comparing Basf (OTCMKTS:BASFY) & DuPont de Nemours (NYSE:DD)

DuPont de Nemours (NYSE:DD) and Basf (OTCMKTS:BASFY) are both large-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Earnings and Valuation

This table compares DuPont de Nemours and Basf”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DuPont de Nemours	$12.39 billion	1.51	$703.00 million	($1.84)	-24.25
Basf	$70.63 billion	N/A	$1.40 billion	$0.10	137.10

Basf has higher revenue and earnings than DuPont de Nemours. DuPont de Nemours is trading at a lower price-to-earnings ratio than Basf, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DuPont de Nemours and Basf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DuPont de Nemours	-6.17%	7.81%	4.98%
Basf	0.43%	6.86%	3.07%

Institutional and Insider Ownership

74.0% of DuPont de Nemours shares are owned by institutional investors. Comparatively, 0.0% of Basf shares are owned by institutional investors. 0.6% of DuPont de Nemours shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

DuPont de Nemours has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Basf has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Dividends

DuPont de Nemours pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. Basf pays an annual dividend of $0.44 per share and has a dividend yield of 3.2%. DuPont de Nemours pays out -43.5% of its earnings in the form of a dividend. Basf pays out 440.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DuPont de Nemours and Basf, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DuPont de Nemours	1	4	10	0	2.60
Basf	2	3	2	0	2.00

DuPont de Nemours presently has a consensus target price of $45.99, indicating a potential upside of 3.08%. Given DuPont de Nemours’ stronger consensus rating and higher possible upside, analysts clearly believe DuPont de Nemours is more favorable than Basf.

Summary

DuPont de Nemours beats Basf on 9 of the 15 factors compared between the two stocks.

About DuPont de Nemours

DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.

About Basf

BASF SE operates as a chemical company worldwide. It operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates. The Materials segment offers advanced materials and their precursors for applications and systems comprising isocyanates, polyamides, and inorganic basic products, as well as specialties for plastics and plastics processing industries. The Industrial Solutions segment develops and markets ingredients and additives for industrial applications, such as polymer dispersions, resins, additives, electronic materials, and antioxidants for automotive, plastics, paints and coatings, electronics, and energy and resource industries. The Surface Technologies segment provides automotive OEM and refinish coatings, surface treatment, catalysts, battery materials, and precious and base metal services for the automotive and chemical sectors. The Nutrition & Care segment offers ingredients for consumer goods in the areas of nutrition, home, personal care, and technical applications; and serves the food and feed producers, pharmaceutical, cosmetics, detergents, cleaners, and crop protection industries, as well as fast-moving consumer goods sector. The Agricultural Solutions segment provides seeds and seed treatment products; fungicides, herbicides, insecticides, and biological crop protection products; and digital farming solutions. The company engages in engineering and other; rental and leasing; and commodity trading activities. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.