Sumitomo Chemcl (OTCMKTS:SOMMY) vs. Yara International ASA (OTCMKTS:YARIY) Head-To-Head Comparison

Sumitomo Chemcl (OTCMKTS:SOMMY) and Yara International ASA (OTCMKTS:YARIY) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Sumitomo Chemcl and Yara International ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Chemcl	4.52%	8.37%	3.07%
Yara International ASA	9.11%	16.77%	8.53%

Valuation and Earnings

This table compares Sumitomo Chemcl and Yara International ASA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Chemcl	$15.47 billion	0.40	$402.25 million	$2.11	8.89
Yara International ASA	$15.71 billion	0.78	$1.37 billion	$3.01	8.01

Yara International ASA has higher revenue and earnings than Sumitomo Chemcl. Yara International ASA is trading at a lower price-to-earnings ratio than Sumitomo Chemcl, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.0% of Yara International ASA shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sumitomo Chemcl and Yara International ASA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Chemcl	0	1	0	0	2.00
Yara International ASA	1	4	0	2	2.43

Risk and Volatility

Sumitomo Chemcl has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Yara International ASA has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Dividends

Sumitomo Chemcl pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. Yara International ASA pays an annual dividend of $0.83 per share and has a dividend yield of 3.4%. Sumitomo Chemcl pays out 13.3% of its earnings in the form of a dividend. Yara International ASA pays out 27.6% 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.

Summary

Yara International ASA beats Sumitomo Chemcl on 12 of the 14 factors compared between the two stocks.

About Sumitomo Chemcl

Sumitomo Chemical Company, Limited engages in Chemicals & Plastics, energy and functional materials, IT-related chemicals, health and crop sciences, pharmaceuticals, and other businesses worldwide. Its Essential Chemicals & Plastics segment offers synthetic resins, such as polyethylene, polypropylene, and polymethyl methacrylate resins; raw materials for synthetic fibers; and various industrial chemicals. The company's Energy & Functional Materials segment provides alumina and aluminum products used for energy products; resorcinol for tires, wood adhesives, flame retardants, and ultraviolet ray absorbants; polymer additives and rubber chemicals; synthetic rubber for tires, shoes, construction materials, and other applications; and engineering plastics and lithium-ion secondary battery materials for use in electronic components and next-generation vehicles. Its IT-Related Chemicals segment provides polarizing films, touch screen sensor panels, and color resists and polymer OLED for LC and OLED displays; photoresists and high-purity chemicals for the semiconductor manufacturing process; and compound semiconductor materials for antenna switches and other components of communication terminal equipment. The company's Health & Crop Sciences segment offers crop protection chemicals, fertilizers, feed additives, and household insecticides; active pharmaceutical ingredients and intermediates; and products to control infectious diseases. Its Pharmaceuticals segment provides prescription and diagnostic pharmaceuticals. The company's Others segment supplies electric power and steam; designs, constructs, and supervises chemical plants; provides transportation and warehousing services; and conducts physical property and environmental analysis. Sumitomo Chemical Company, Limited was founded in 1913 and is headquartered in Tokyo, Japan.

About Yara International ASA

Yara International ASA provides crop nutrition and industrial solutions in Norway, European Union, Europe, Africa, Asia, North and Latin America, Australia, and New Zealand. The company offers ammonium- and urea-based fertilizers; compound fertilizers that contain nutrients, such as nitrogen, phosphorus, and potassium; coatings; biostimulants; organic-based fertilizers; green fertilizers are nitrate-based mineral fertilizers, as well as foliar and fertigation solutions; and nitrate, calcium nitrate, micronutrient, and fertigation and urea fertilizers. It also offers digital solutions, such as variable rate application solutions; N-Sensor, a tractor-mounted hardware; N-Tester, a handheld nitrogen measurement tool; YaraFX Insight, an agricultural API; and Atfarm, a digital toolbox for farmer. The company sells its products under YaraBela, YaraMila, YaraLiva, YaraVita, YaraRega, YaraTera, YaraSuna, and YaraVera and brands. Yara International ASA was founded in 1905 and is headquartered in Oslo, Norway.