Kronos Worldwide (NYSE:KRO) & Asahi Kasei (OTCMKTS:AHKSY) Head to Head Review

Asahi Kasei (OTCMKTS:AHKSY) and Kronos Worldwide (NYSE:KRO) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for Asahi Kasei and Kronos Worldwide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asahi Kasei	0	1	0	1	3.00
Kronos Worldwide	2	1	0	0	1.33

Kronos Worldwide has a consensus target price of $5.00, indicating a potential downside of 26.86%. Given Kronos Worldwide’s higher possible upside, analysts plainly believe Kronos Worldwide is more favorable than Asahi Kasei.

Profitability

This table compares Asahi Kasei and Kronos Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asahi Kasei	5.14%	8.53%	4.25%
Kronos Worldwide	-7.12%	-15.01%	-6.33%

Risk & Volatility

Asahi Kasei has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Kronos Worldwide has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Dividends

Asahi Kasei pays an annual dividend of $0.33 per share and has a dividend yield of 1.5%. Kronos Worldwide pays an annual dividend of $0.20 per share and has a dividend yield of 2.9%. Asahi Kasei pays out 21.4% of its earnings in the form of a dividend. Kronos Worldwide pays out -17.2% 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. Kronos Worldwide is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

15.1% of Kronos Worldwide shares are held by institutional investors. 0.2% of Kronos Worldwide shares are held by insiders. 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.

Earnings & Valuation

This table compares Asahi Kasei and Kronos Worldwide”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asahi Kasei	$20.42 billion	0.76	$1.05 billion	$1.54	14.41
Kronos Worldwide	$1.86 billion	0.42	-$110.90 million	($1.16)	-5.89

Asahi Kasei has higher revenue and earnings than Kronos Worldwide. Kronos Worldwide is trading at a lower price-to-earnings ratio than Asahi Kasei, indicating that it is currently the more affordable of the two stocks.

Summary

Asahi Kasei beats Kronos Worldwide on 10 of the 16 factors compared between the two stocks.

About Asahi Kasei

Asahi Kasei Corporation manufactures and sells chemicals. It offers caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, acetonitrile, methacrylonitrile, cyclohexyl methacrylate, polyethylenes, polyethylenes powder, PMMA resin, polystyrene, polybutadiene rubbers, styrene/butadiene rubbers, clear styrenic copolymer, styrenic thermoplastic elastomer, hydrogenated styrenic elastomers, membranes and systems, functional materials, foams, purging compound, polyisocyanates, polycarbonatediol, aluminum paste, latex, photopolymers and platemaking systems, films, cyclohexanol, cyclohexane, and cyclohexene. The company also offers lithium-ion battery and lead-acid battery separators, plastic optical fibers, artificial suede, nylon 66 filament, polyamide 66, polyacetal, polyphenyene ether, polypropylene compounds, 3D cubic knitted fabric, noise suppression sheets, audio devices, photosensitive polyimide/PBO precursor, latent hardeners, glass fabrics, specialty products, explosion-bonded metal clads, lining fabrics, cupro and stretch fibers, oil-water separators, cellulose nanobeads, and flame-resistant and synthetic fiber; magnetic, current, and gas sensors; deodorizing, spunbond, cupro, multifunctional, and heat-press formable thermoplastic nonwoven; and ecorise, biocradle, and bemliese products. It provides bags and containers; cooking products; cleaners; plastic packet cutting products; cyclohexyl methacrylate, bonded anchors, and microcrystalline cellulose; pharmaceuticals and diagnostic reagents, dialyzers, therapeutic apheresis, virus removal filters, defibrillators, AEDs, automated CPRs, fluid resuscitation pumps, wearable defibrillators, temperature management systems, and data solutions; construction materials; and remodeling services, as well as develops homes and apartments. The company was founded in 1922 and is headquartered in Tokyo, Japan.

About Kronos Worldwide

Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. It also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; specialty chemicals for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices, as well as for use in natural gas pipe, and other specialty applications. In addition, the company provides technical services for its products. It sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.