Head to Head Analysis: Oil-Dri Corporation Of America (NYSE:ODC) vs. Akzo Nobel (OTCMKTS:AKZOY)

Oil-Dri Corporation Of America (NYSE:ODC) and Akzo Nobel (OTCMKTS:AKZOY) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Oil-Dri Corporation Of America and Akzo Nobel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oil-Dri Corporation Of America	11.35%	20.53%	14.17%
Akzo Nobel	6.44%	13.42%	4.29%

Dividends

Oil-Dri Corporation Of America pays an annual dividend of $0.82 per share and has a dividend yield of 0.8%. Akzo Nobel pays an annual dividend of $0.99 per share and has a dividend yield of 4.4%. Oil-Dri Corporation Of America pays out 21.1% of its earnings in the form of a dividend. Akzo Nobel pays out 70.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oil-Dri Corporation Of America has raised its dividend for 11 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Oil-Dri Corporation Of America and Akzo Nobel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oil-Dri Corporation Of America	0	0	1	0	3.00
Akzo Nobel	0	6	1	1	2.38

Valuation and Earnings

This table compares Oil-Dri Corporation Of America and Akzo Nobel”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oil-Dri Corporation Of America	$485.57 million	3.06	$54.00 million	$3.89	26.35
Akzo Nobel	$11.49 billion	1.01	$718.44 million	$1.40	16.11

Akzo Nobel has higher revenue and earnings than Oil-Dri Corporation Of America. Akzo Nobel is trading at a lower price-to-earnings ratio than Oil-Dri Corporation Of America, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

49.0% of Oil-Dri Corporation Of America shares are owned by institutional investors. Comparatively, 0.4% of Akzo Nobel shares are owned by institutional investors. 11.7% of Oil-Dri Corporation Of America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Oil-Dri Corporation Of America has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Akzo Nobel has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Summary

Oil-Dri Corporation Of America beats Akzo Nobel on 11 of the 16 factors compared between the two stocks.

About Oil-Dri Corporation Of America

Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.

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.