RPM International (RPM) vs. AkzoNobel (AKZOY) Head-To-Head Survey

RPM International (NYSE: RPM) and AkzoNobel (OTCMKTS:AKZOY) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares RPM International and AkzoNobel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RPM International 7.23% 24.28% 7.41%
AkzoNobel 6.19% 16.46% 6.91%

Institutional & Insider Ownership

75.9% of RPM International shares are owned by institutional investors. Comparatively, 0.3% of AkzoNobel shares are owned by institutional investors. 2.1% of RPM International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

RPM International has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, AkzoNobel has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Dividends

RPM International pays an annual dividend of $1.28 per share and has a dividend yield of 2.6%. AkzoNobel pays an annual dividend of $0.57 per share and has a dividend yield of 1.8%. RPM International pays out 51.8% of its earnings in the form of a dividend. AkzoNobel pays out 34.5% 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. RPM International has increased its dividend for 43 consecutive years. RPM International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for RPM International and AkzoNobel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RPM International 1 4 4 0 2.33
AkzoNobel 0 2 1 0 2.33

RPM International presently has a consensus price target of $54.17, suggesting a potential upside of 8.70%. Given RPM International’s higher probable upside, equities research analysts clearly believe RPM International is more favorable than AkzoNobel.

Earnings and Valuation

This table compares RPM International and AkzoNobel’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RPM International $4.96 billion 1.34 $181.82 million $2.47 20.17
AkzoNobel $10.86 billion 2.26 $940.40 million $1.65 19.70

AkzoNobel has higher revenue and earnings than RPM International. AkzoNobel is trading at a lower price-to-earnings ratio than RPM International, indicating that it is currently the more affordable of the two stocks.

Summary

RPM International beats AkzoNobel on 12 of the 16 factors compared between the two stocks.

About RPM International

RPM International Inc. manufactures, markets, and sells specialty chemical products for industrial, specialty, and consumer markets worldwide. Its Industrial segment offers waterproofing, coatings, and institutional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance and related services; sealing and bonding solutions; flooring and in-plant glazing solutions; passive fire protection and manufacturing industry solutions; polymer flooring systems; and fiberglass reinforced plastic gratings and shapes. This segment also offers corrosion-control coatings, containment linings, fire and sound proofing products, and insulation products; rolled asphalt roofing materials, chemical admixtures, and industrial epoxy flooring systems; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts, epoxy adhesives, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials, as well as specialty construction products. The company's Specialty segment provides fluorescent colorants and pigments; shellac-based-specialty and marine coatings; insulated building cladding materials; fire and water damage restoration products; carpet cleaning and disinfecting products; fuel additives; and wood treatments, furniture finishes, and touch-up products. Its Consumer segment offers professional use and do-it-yourself (DIY) products, such as specialty products for paint contractors and the DIYers, deck and fence restoration products, metallic and faux finish coatings, exterior wood deck and concrete restoration systems, flooring finishes, hobby paints and cements, and nail care enamel polish and coating components, as well as caulk, sealant, adhesive, insulating foam, spackling, glazing, and other general patch and repair products. The company was founded in 1947 and is headquartered in Medina, Ohio.

About AkzoNobel

Akzo Nobel N.V. operates as a paints and coatings company in the Netherlands and internationally. The company operates through Decorative Paints and Performance Coatings segments. It provides decorative paints, including paints, lacquers, and varnishes; mixing machines, color concepts, and training courses for the building and renovation industry; and specialty coatings for metal, wood, and other building materials. The company offers its decorative paints under the Alba, Astral, Bruguer, Coral, Dulux, Flexa, Inca, Levis, Marshall, Nordsjo, Sadolin, Sikkens, and Vivechrome brands. It also offers performance coatings to protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.

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