Financial Comparison: Novozymes A/S (OTCMKTS:NVZMY) & Brenntag (OTCMKTS:BNTGY)

Brenntag (OTCMKTS:BNTGY) and Novozymes A/S (OTCMKTS:NVZMY) are both large-cap materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Brenntag and Novozymes A/S, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brenntag	1	6	0	0	1.86
Novozymes A/S	0	1	0	2	3.33

Valuation & Earnings

This table compares Brenntag and Novozymes A/S”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brenntag	$17.16 billion	0.59	$299.37 million	$0.59	23.65
Novozymes A/S	$4.70 billion	6.16	$660.28 million	$1.58	44.20

Novozymes A/S has lower revenue, but higher earnings than Brenntag. Brenntag is trading at a lower price-to-earnings ratio than Novozymes A/S, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Brenntag has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Novozymes A/S has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Novozymes A/S shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Brenntag pays an annual dividend of $0.26 per share and has a dividend yield of 1.9%. Novozymes A/S pays an annual dividend of $0.39 per share and has a dividend yield of 0.6%. Brenntag pays out 44.1% of its earnings in the form of a dividend. Novozymes A/S pays out 24.7% 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.

Profitability

This table compares Brenntag and Novozymes A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brenntag	2.41%	8.30%	3.32%
Novozymes A/S	14.70%	6.54%	4.34%

Summary

Novozymes A/S beats Brenntag on 11 of the 14 factors compared between the two stocks.

About Brenntag

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.

About Novozymes A/S

Novozymes A/S produces and sells industrial enzymes, microorganisms, and probiotics in Denmark, rest of Europe, North America, Asia Pacific, the Middle East, Africa, Latin America, and internationally. The company offers protein solutions for the food and beverage industry. It also offers industrial hygiene, drain openers, hard surface, medical cleaning, septic tanks, ware washing, and professional laundry services. In addition, the company provides dishwashing, softener, microbial and medical cleaning services. Further, it provides corn, cotton, forages, peanuts, pulses, soybeans, wheat, small grains, bioyield, and biocontrol solutions; warm water species, recirculating aquaculture system; animal health and nutrition solutions; fiber modification, bleach boosting, deposit control, and starch modification solutions. Additionally, the company provides carbon capture, leather and textiles solutions; enzyme solutions, including corn and wheat separation, liquefaction, saccharification, filtration, isomerization, maltose, and specialties solutions; warm water species and recirculating aquaculture system solutions; human health solutions, comprising brain, oral, protective and immune, and gastrointestinal health solutions; ethanol, biodiesel, renewable diesel, education, wastewater, and sewage sludge, and renewable diesel solutions; agriculture and industry, biogas food waste, food waste, biocatalysis, cell culture, diagnostics, enzyme, and biogas solutions. Furthermore, it provides lipases, proteases, oxidoreductases, and carbohydrases. Novozymes A/S was founded in 1925 and is based in Bagsvaerd, Denmark.