Kuraray (OTCMKTS:KURRY – Get Free Report) and Axalta Coating Systems (NYSE:AXTA – Get Free Report) are both mid-cap materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Institutional & Insider Ownership
98.3% of Axalta Coating Systems shares are owned by institutional investors. 0.5% of Axalta Coating Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Kuraray and Axalta Coating Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kuraray | 1 | 0 | 0 | 0 | 1.00 |
| Axalta Coating Systems | 0 | 8 | 4 | 1 | 2.46 |
Axalta Coating Systems has a consensus price target of $38.18, indicating a potential upside of 11.79%. Given Axalta Coating Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Axalta Coating Systems is more favorable than Kuraray.
Risk and Volatility
Kuraray has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500. Comparatively, Axalta Coating Systems has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Profitability
This table compares Kuraray and Axalta Coating Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kuraray | 0.92% | 5.37% | 3.08% |
| Axalta Coating Systems | 6.78% | 22.35% | 7.12% |
Earnings and Valuation
This table compares Kuraray and Axalta Coating Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kuraray | $5.41 billion | 0.61 | $50.04 million | $0.53 | 62.16 |
| Axalta Coating Systems | $5.12 billion | 1.43 | $378.00 million | $1.62 | 21.08 |
Axalta Coating Systems has lower revenue, but higher earnings than Kuraray. Axalta Coating Systems is trading at a lower price-to-earnings ratio than Kuraray, indicating that it is currently the more affordable of the two stocks.
Summary
Axalta Coating Systems beats Kuraray on 13 of the 15 factors compared between the two stocks.
About Kuraray
Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. It is also involved in the engineering business; design and construction of various plants; outsourcing of logistics services; temporary staffing/introduction business; design, manufacture, construction, and sale of water treatment equipment; travel and insurance agency business; golf course management; management of accommodation facilities and restaurants; manufacture and sale of hook-and loop fasteners and related products; manufacture and sale of dental materials; warehousing and logistics; and manufacturing and sales of methacrylic resin sheets, as well as provides consulting services. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.
About Axalta Coating Systems
Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.
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