Analyzing E.I. du Pont de Nemours and (DD) & Raven Industries (RAVN)
E.I. du Pont de Nemours and (NYSE: DD) and Raven Industries (NASDAQ:RAVN) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitabiliy, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
71.2% of E.I. du Pont de Nemours and shares are held by institutional investors. Comparatively, 73.6% of Raven Industries shares are held by institutional investors. 0.3% of E.I. du Pont de Nemours and shares are held by company insiders. Comparatively, 1.8% of Raven Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for E.I. du Pont de Nemours and and Raven Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|E.I. du Pont de Nemours and||0||4||6||0||2.60|
E.I. du Pont de Nemours and presently has a consensus target price of $80.19, suggesting a potential downside of 1.15%. Raven Industries has a consensus target price of $33.00, suggesting a potential downside of 3.79%. Given E.I. du Pont de Nemours and’s stronger consensus rating and higher possible upside, equities analysts clearly believe E.I. du Pont de Nemours and is more favorable than Raven Industries.
Earnings & Valuation
This table compares E.I. du Pont de Nemours and and Raven Industries’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|E.I. du Pont de Nemours and||$25.30 billion||2.78||$5.32 billion||$2.56||31.69|
|Raven Industries||$302.57 million||4.10||$56.53 million||$0.74||46.35|
E.I. du Pont de Nemours and has higher revenue and earnings than Raven Industries. E.I. du Pont de Nemours and is trading at a lower price-to-earnings ratio than Raven Industries, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
E.I. du Pont de Nemours and has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Raven Industries has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
E.I. du Pont de Nemours and pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%. Raven Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. E.I. du Pont de Nemours and pays out 59.4% of its earnings in the form of a dividend. Raven Industries pays out 70.3% 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. E.I. du Pont de Nemours and is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares E.I. du Pont de Nemours and and Raven Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|E.I. du Pont de Nemours and||8.86%||31.23%||8.10%|
E.I. du Pont de Nemours and beats Raven Industries on 11 of the 16 factors compared between the two stocks.
About E.I. du Pont de Nemours and
E. I. du Pont de Nemours and Company is a science and technology-based company. It operates through six segments: Agriculture, Electronics & Communications (E&C), Industrial Biosciences, Nutrition & Health, Performance Materials and Protection Solutions. Its Agriculture segment includes products, such as corn hybrids and soybean varieties, herbicides, fungicides and insecticides. Its E&C segment includes products, such as printing and packaging materials, photopolymers and electronic materials. Its Industrial Biosciences segment includes products, such as enzymes, bio-based materials and process technologies. Its Nutrition & Health segment includes products, such as probiotics, cultures, emulsifiers, natural sweeteners and soy-based food ingredients. Its Performance Materials segment includes products, such as engineering polymers, packaging and industrial polymers, films and elastomers. Its Protection Solutions segment includes products, such as nonwovens, aramids and solid surfaces.
About Raven Industries
Raven Industries, Inc. is a diversified technology company providing a range of products to customers within the industrial, agricultural, energy, construction and defense markets. The Company operates through three segments: Applied Technology Division (Applied Technology), Engineered Films Division (Engineered Films) and Aerostar Division (Aerostar). The Applied Technology segment designs, manufactures, sells and services precision agriculture products and information management tools for growers. The Engineered Films segment produces plastic films and sheeting for energy, agricultural, construction, geomembrane and industrial applications. The Aerostar segment designs and manufactures products, including balloons, tethered aerostats and radar processing systems. It conducts business through its subsidiaries, including Aerostar International, Inc. (Aerostar), Vista Research, Inc. (Vista), Raven International Holding Company BV (Raven Holdings) and Raven Industries Canada, Inc.
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