Head to Head Analysis: SIKA (OTCMKTS:SXYAY) and Quaker Houghton (NYSE:KWR)

SIKA (OTCMKTS:SXYAY) and Quaker Houghton (NYSE:KWR) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares SIKA and Quaker Houghton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SIKA	N/A	N/A	N/A
Quaker Houghton	-0.13%	8.99%	4.42%

Analyst Ratings

This is a breakdown of current ratings for SIKA and Quaker Houghton, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SIKA	1	3	2	3	2.78
Quaker Houghton	2	0	3	0	2.20

Quaker Houghton has a consensus price target of $163.00, suggesting a potential upside of 22.02%. Given Quaker Houghton’s higher possible upside, analysts plainly believe Quaker Houghton is more favorable than SIKA.

Insider and Institutional Ownership

77.5% of Quaker Houghton shares are held by institutional investors. 1.0% of Quaker Houghton shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

SIKA has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Quaker Houghton has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares SIKA and Quaker Houghton”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SIKA	$13.52 billion	2.13	$1.26 billion	N/A	N/A
Quaker Houghton	$1.89 billion	1.23	-$2.49 million	($0.12)	-1,113.18

SIKA has higher revenue and earnings than Quaker Houghton.

Dividends

SIKA pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Quaker Houghton pays an annual dividend of $2.03 per share and has a dividend yield of 1.5%. Quaker Houghton pays out -1,691.7% of its earnings in the form of a dividend. Quaker Houghton has increased its dividend for 17 consecutive years. Quaker Houghton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Quaker Houghton beats SIKA on 10 of the 16 factors compared between the two stocks.

About SIKA

Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The company offers tile adhesives and grouts, systems for under-tile waterproofing, sound reduction, renders, decorative finishes for exterior and interior walls, as well as exterior insulation finishing system; develops admixtures and additives for concrete, cement, and mortar production; and flat roofing systems. It also provides a range of technologies used for below and above-ground waterproofing, including flexible membrane systems, liquid-applied membranes, joint waterproofing systems, and waterproofing mortars and injection resins for commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. In addition, the company offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, adhesives, tapes, and spray foams for the building facades, interior finishing, and infrastructure projects. Further, it provides repairing, reinforcing, and protective solutions for concrete structures, such as repair mortars, shrinking grouts, anchoring adhesives, protective coatings, corrosion control, and structural strengthening systems. The company serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessel, industrial lamination, renewable energy, home appliance, and facade engineering industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.

About Quaker Houghton

Quaker Chemical Corporation, together with its subsidiaries, develops, produces, and markets various formulated specialty chemical products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.