Heineken (OTCMKTS:HEINY) and SHIN ETSU Chem/ADR (OTCMKTS:SHECY) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Heineken and SHIN ETSU Chem/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heineken 0 2 0 0 2.00
SHIN ETSU Chem/ADR 0 0 0 0 N/A

Valuation & Earnings

This table compares Heineken and SHIN ETSU Chem/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heineken $24.73 billion 2.07 $2.19 billion $2.23 19.91
SHIN ETSU Chem/ADR $13.02 billion 2.66 $2.51 billion $1.41 14.20

SHIN ETSU Chem/ADR has lower revenue, but higher earnings than Heineken. SHIN ETSU Chem/ADR is trading at a lower price-to-earnings ratio than Heineken, indicating that it is currently the more affordable of the two stocks.

Dividends

Heineken pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. SHIN ETSU Chem/ADR pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Heineken pays out 24.2% of its earnings in the form of a dividend. SHIN ETSU Chem/ADR pays out 8.5% 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.

Profitability

This table compares Heineken and SHIN ETSU Chem/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heineken N/A N/A N/A
SHIN ETSU Chem/ADR 19.33% 12.19% 10.15%

Volatility and Risk

Heineken has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, SHIN ETSU Chem/ADR has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

0.2% of Heineken shares are held by institutional investors. Comparatively, 0.2% of SHIN ETSU Chem/ADR shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

SHIN ETSU Chem/ADR beats Heineken on 7 of the 11 factors compared between the two stocks.

Heineken Company Profile

Heineken N.V. engages in brewing and selling beer and cider. The company operates through Africa, Middle East & Eastern Europe; Americas; Asia Pacific; and Europe segments. It offers beer, cider, soft drinks, and other beverages. The company offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Tecate, Red Stripe, KruĀšovice, Birra Morett, Affligem, and Lagunitas brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Stassen, Bulmers, Old Mout, and Blind Pig brands. It offers its products to retailers, bars, and restaurants through distributors. The company was founded in 1864 and is headquartered in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V.

SHIN ETSU Chem/ADR Company Profile

Shin-Etsu Chemical Co., Ltd. manufactures and sells polyvinyl chloride (PVC), semiconductor devices, silicones, and rare earth magnets worldwide. The company operates through PVC/Chlor-Alkali; Semiconductor Silicon; Silicones; Electronics and Functional Materials; Specialty Chemicals; and Processing, Trading & Specialized Services segments. It offers PVC for use in PVC pipes, plastic greenhouses, electric wire coating materials, vinyl windows, and siding materials; caustic soda for use in alumina, paper and pulp, soap and detergents, and super-absorbent polymers; sodium hypochlorite; methanol; and chloromethane. The company also provides semiconductor silicon wafers for use as substrate materials in electronic devices and automobiles; and compound semiconductor products for outdoor displays, traffic lights, in-vehicle stop lamps, sensor light sources, etc. In addition, it offers silicone products for use in electric and electronic, automobile, construction, cosmetic, chemical, health care, and food industries; rare earth magnets used in automobile motors, industrial robots, home appliances, and hard disk drives; photoresists, photomask blanks, encapsulation materials, and pellicles; synthetic quartz products; and liquid fluoroelastomers. Further, the company provides cellulose derivatives for use in various applications, such as pharmaceuticals, food, construction materials, engineering projects, coatings, ceramics, paper processing, cosmetics, and toiletries applications; synthetic pheromones for agricultural pest control; POVAL, a functional resin; and silicon metal. Additionally, it offers automobile dashboard audio and air conditioners, silicon rubber glasses and catheters, wafer cases, various rollers for OA equipment, and vacuum superposition equipment. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. The company was founded in 1926 and is headquartered in Tokyo, Japan.

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