Critical Survey: Tokuyama (OTCMKTS:TKYMY) and Johnson Matthey (OTCMKTS:JMPLY)

Tokuyama (OTCMKTS:TKYMY) and Johnson Matthey (OTCMKTS:JMPLY) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Tokuyama and Johnson Matthey, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokuyama	0	0	0	0	0.00
Johnson Matthey	1	1	1	2	2.80

Volatility and Risk

Tokuyama has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Johnson Matthey has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Dividends

Tokuyama pays an annual dividend of $0.22 per share and has a dividend yield of 1.6%. Johnson Matthey pays an annual dividend of $2.91 per share and has a dividend yield of 5.4%. Tokuyama pays out 21.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Tokuyama and Johnson Matthey”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokuyama	$2.32 billion	0.87	$147.51 million	$1.03	13.59
Johnson Matthey	$16.85 billion	0.27	-$128.67 million	N/A	N/A

Tokuyama has higher earnings, but lower revenue than Johnson Matthey.

Profitability

This table compares Tokuyama and Johnson Matthey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokuyama	6.41%	7.94%	4.20%
Johnson Matthey	N/A	N/A	N/A

Summary

Johnson Matthey beats Tokuyama on 7 of the 12 factors compared between the two stocks.

About Tokuyama

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.

About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.