DuPont de Nemours (NYSE:DD – Get Free Report) and Oil-Dri Corporation Of America (NYSE:ODC – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Dividends
DuPont de Nemours pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Oil-Dri Corporation Of America pays an annual dividend of $0.82 per share and has a dividend yield of 1.1%. DuPont de Nemours pays out -1,333.3% of its earnings in the form of a dividend. Oil-Dri Corporation Of America pays out 22.2% 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. Oil-Dri Corporation Of America has increased its dividend for 11 consecutive years. DuPont de Nemours is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares DuPont de Nemours and Oil-Dri Corporation Of America”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DuPont de Nemours | $6.92 billion | 2.99 | -$779.00 million | ($0.06) | -842.18 |
| Oil-Dri Corporation Of America | $485.57 million | 2.29 | $54.00 million | $3.69 | 20.82 |
Oil-Dri Corporation Of America has lower revenue, but higher earnings than DuPont de Nemours. DuPont de Nemours is trading at a lower price-to-earnings ratio than Oil-Dri Corporation Of America, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
74.0% of DuPont de Nemours shares are owned by institutional investors. Comparatively, 49.0% of Oil-Dri Corporation Of America shares are owned by institutional investors. 1.0% of DuPont de Nemours shares are owned by insiders. Comparatively, 11.7% of Oil-Dri Corporation Of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and price targets for DuPont de Nemours and Oil-Dri Corporation Of America, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DuPont de Nemours | 1 | 3 | 12 | 0 | 2.69 |
| Oil-Dri Corporation Of America | 0 | 0 | 1 | 0 | 3.00 |
DuPont de Nemours currently has a consensus target price of $55.21, suggesting a potential upside of 9.27%. Given DuPont de Nemours’ higher possible upside, equities research analysts plainly believe DuPont de Nemours is more favorable than Oil-Dri Corporation Of America.
Volatility and Risk
DuPont de Nemours has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Oil-Dri Corporation Of America has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Profitability
This table compares DuPont de Nemours and Oil-Dri Corporation Of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DuPont de Nemours | -0.30% | 7.15% | 4.57% |
| Oil-Dri Corporation Of America | 11.01% | 20.18% | 13.78% |
Summary
Oil-Dri Corporation Of America beats DuPont de Nemours on 9 of the 17 factors compared between the two stocks.
About DuPont de Nemours
DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.
About Oil-Dri Corporation Of America
Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.
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