Kuraray (OTCMKTS:KURRY – Get Free Report) and American Vanguard (NYSE:AVD – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Profitability
This table compares Kuraray and American Vanguard’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kuraray | 0.92% | 5.33% | 3.07% |
| American Vanguard | -10.70% | -9.05% | -2.78% |
Risk and Volatility
Kuraray has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kuraray | $5.41 billion | 0.63 | $50.04 million | $0.53 | 63.96 |
| American Vanguard | $510.32 million | 0.13 | -$49.88 million | ($1.90) | -1.22 |
Kuraray has higher revenue and earnings than American Vanguard. American Vanguard is trading at a lower price-to-earnings ratio than Kuraray, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Kuraray and American Vanguard, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kuraray | 1 | 0 | 0 | 0 | 1.00 |
| American Vanguard | 1 | 0 | 0 | 0 | 1.00 |
Institutional and Insider Ownership
79.0% of American Vanguard shares are owned by institutional investors. 5.6% of American Vanguard shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Kuraray pays an annual dividend of $0.34 per share and has a dividend yield of 1.0%. American Vanguard pays an annual dividend of $0.03 per share and has a dividend yield of 1.3%. Kuraray pays out 64.2% of its earnings in the form of a dividend. American Vanguard pays out -1.6% 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. American Vanguard is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Kuraray beats American Vanguard on 8 of the 13 factors compared between the two stocks.
About Kuraray
Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. It is also involved in the engineering business; design and construction of various plants; outsourcing of logistics services; temporary staffing/introduction business; design, manufacture, construction, and sale of water treatment equipment; travel and insurance agency business; golf course management; management of accommodation facilities and restaurants; manufacture and sale of hook-and loop fasteners and related products; manufacture and sale of dental materials; warehousing and logistics; and manufacturing and sales of methacrylic resin sheets, as well as provides consulting services. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.
About American Vanguard
American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. It manufactures and formulates chemicals, including insecticides, fungicides, herbicides, soil health, plant nutrition, molluscicides, growth regulators, soil fumigants, and biorationals in liquid, powder, and granular forms for crops, turf and ornamental plants, and human and animal health protection. The company also markets, sells, and distributes end-use chemical and biological products for crop applications; and distributes chemicals for turf and ornamental markets. It distributes its products through national distribution companies, and buying groups or co-operatives; and through sales offices, sales force executives, sales agents, and wholly owned distributors. American Vanguard Corporation was incorporated in 1969 and is headquartered in Newport Beach, California.
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