Nippon Paint (NPCPF) vs. Its Rivals Financial Analysis

Nippon Paint (OTCMKTS:NPCPF) is one of 298 public companies in the “Chemicals” industry, but how does it weigh in compared to its rivals? We will compare Nippon Paint to related businesses based on the strength of its risk, valuation, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Risk and Volatility

Nippon Paint has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500. Comparatively, Nippon Paint’s rivals have a beta of 1.24, indicating that their average share price is 24% more volatile than the S&P 500.

Institutional & Insider Ownership

47.1% of shares of all “Chemicals” companies are owned by institutional investors. 13.8% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Nippon Paint and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nippon Paint	$11.87 billion	$1.20 billion	11.95
Nippon Paint Competitors	$6.22 billion	$217.41 million	-3.51

Nippon Paint has higher revenue and earnings than its rivals. Nippon Paint is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nippon Paint and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Paint	0	1	0	0	2.00
Nippon Paint Competitors	3092	11837	13851	483	2.40

As a group, “Chemicals” companies have a potential upside of 12.54%. Given Nippon Paint’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Nippon Paint has less favorable growth aspects than its rivals.

Profitability

This table compares Nippon Paint and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Paint	10.53%	11.27%	4.97%
Nippon Paint Competitors	-122.61%	-12.10%	-2.28%

Summary

Nippon Paint rivals beat Nippon Paint on 7 of the 13 factors compared.

Nippon Paint Company Profile

Nippon Paint Holdings Co., Ltd. engages in the paints and fine chemicals businesses. The company offers automotive coatings, including paints for the automotive body, including surface treatment, electrodeposition coating, intermediate coating, and finish coating; paints for plastic components, such as bumpers and interior components; trade-use paints for construction sites, including single-family detached homes, buildings, and bridges; and industrial coatings that are used in a range of products, including construction and farming machinery, exterior construction materials, office equipment, and electric home appliances. It also provides marine coatings, such as antifouling paints; treatment agents for steel and aluminum products; and paints for DIY applications comprising wallpaper, wall cloth, and wooden, steel, and concrete materials. In addition, the company offers surface treatment products comprising functional coatings, which demonstrate various functions, such as hydrophilicity and rust prevention, and substrate films; caulking agents to fill gaps between building materials; adhesives to fix flooring and building materials; and fillers used for base coatings. Further, it is involved in the investment business; manufactures and sells surface treatment agents; and sales of paints and raw materials. The company has operations in Japan, Asia, the Americas, Oceania, and internationally. The company was formerly known as Nippon Paint Co., Ltd. and changed its name to Nippon Paint Holdings Co., Ltd. in October 2014. Nippon Paint Holdings Co., Ltd. was founded in 1879 and is headquartered in Tokyo, Japan.