Comparing Resonac (SHWDY) & Its Rivals

Resonac (OTCMKTS:SHWDY) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it weigh in compared to its peers? We will compare Resonac to similar businesses based on the strength of its valuation, profitability, analyst recommendations, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Resonac and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resonac	4.05%	7.54%	2.61%
Resonac Competitors	-61.52%	1.06%	-1.43%

Institutional & Insider Ownership

47.5% of shares of all “Chemicals” companies are owned by institutional investors. 13.9% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Resonac pays an annual dividend of $0.27 per share and has a dividend yield of 0.3%. Resonac pays out 14.7% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 109.9% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Resonac and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Resonac	$9.01 billion	$194.51 million	45.29
Resonac Competitors	$6.41 billion	$222.31 million	-3.77

Resonac has higher revenue, but lower earnings than its peers. Resonac is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and target prices for Resonac and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resonac	0	0	0	1	4.00
Resonac Competitors	3234	12160	14086	515	2.40

As a group, “Chemicals” companies have a potential upside of 7.10%. Given Resonac’s peers higher probable upside, analysts clearly believe Resonac has less favorable growth aspects than its peers.

Volatility and Risk

Resonac has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Resonac’s peers have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Summary

Resonac beats its peers on 8 of the 15 factors compared.

Resonac Company Profile

Resonac Holdings Corporation operates as a chemical company in Japan, China, rest of Asia, and internationally. It operates through Semiconductor and Electronic Materials, Mobility, Innovation Enabling Materials, and Chemicals segments. The company offers gases and solvents, abatement systems and surface treatments, CMP slurries, and anti-charging materials; semiconductor-related materials, display and sensor-related materials, and films; base and photosensitive materials for PWBs; hard disks, SiCs, and optical semiconductors for use as electronic device components; and molded plastics/sheet-formed, powder metal, and aluminum products for automotives. It also provides lithium-ion batteries and mechanical carbon; ceramics, resins, cosmetic ingredients/medicinal additives, monomers, adhesives, tapes, and chromatography products; and elastomers. In addition, the company offers polyimides; HD media; friction materials; aluminum gravity casting products; packaging/containers for food, medicine, and electronics; electrical insulating epoxy resin molded products; zipper bags and tapes; titanium oxide and alumina; and elastic polishing grindstone. Further, it provides polypropylene and polyethylene; liquefied carbon dioxide, dry ice, and gas-related equipment; liquefied oxygen, nitrogen, and argon; molecular sieve; graphite electrodes; plasters, fireproofing pipes, and wall sidings; cement and moisture removal sheets; industrial materials; and FRP, coated sand, and separating mediums. Additionally, the company engages in the contract development and manufacturing of regenerative medicines; leasing of personal computers and other business equipment; outsourcing of salary, welfare, and finance-related business; and synthesis, analysis, and SDS preparation services. The company was formerly known as Showa Denko K.K. and changed its name to Resonac Holdings Corporation in January 2023. Resonac Holdings Corporation was incorporated in 1939 and is headquartered in Tokyo, Japan.