Univar (UNVR) and DSM (RDSMY) Financial Review

Univar (NYSE: UNVR) and DSM (OTCMKTS:RDSMY) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Insider and Institutional Ownership

92.8% of Univar shares are held by institutional investors. Comparatively, 0.1% of DSM shares are held by institutional investors. 1.8% of Univar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Univar and DSM, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Univar 1 3 3 0 2.29
DSM 0 0 1 0 3.00

Univar currently has a consensus price target of $33.00, suggesting a potential upside of 18.36%. Given Univar’s higher probable upside, research analysts plainly believe Univar is more favorable than DSM.

Dividends

DSM pays an annual dividend of $0.62 per share and has a dividend yield of 2.4%. Univar does not pay a dividend.

Risk and Volatility

Univar has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, DSM has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Valuation & Earnings

This table compares Univar and DSM’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Univar $8.25 billion 0.48 $119.80 million $1.39 20.06
DSM $9.76 billion 1.90 $2.00 billion N/A N/A

DSM has higher revenue and earnings than Univar.

Profitability

This table compares Univar and DSM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Univar 1.93% 19.20% 3.59%
DSM 20.69% 9.43% 4.61%

Summary

DSM beats Univar on 8 of the 13 factors compared between the two stocks.

Univar Company Profile

Univar Inc. distributes commodity and specialty chemical products, and related services worldwide. It offers herbicides, fungicides, insecticides, seeds, micro and macro nutrients, horticultural products, fertilizers, and feeds; storage, packaging, and logistics services for crop protection companies, storing chemicals, feed-grade materials, and seed and equipment parties; and pest control products and equipment. The company also provides organic, inorganic, and polymer chemistries; enzymes, surfactants, solvents, dispersants, thickeners, bleaching aides, builders, sealants, acids, alkalis, and other chemicals for the manufacture of cleaning products; resins, pigments, solvents, thickeners, dispersants, and other additives; and epoxy resins, polyurethanes, titanium dioxides, fumed silica, esters, plasticizers, silicones, and specialty amines. In addition, it offers thickeners, emulsifiers, sweeteners, preservatives, leavening agents, and humectants, as well as texturizer and fat replacement products that include xanthan gum, locust bean gum, cellulosics, and guar gum; acidulants and alkalis; and supplements and related products. Further, the company provides chemicals and services, as well as specialty blended products for the energy sector; surfactants, emollients, emulsifiers, rheology modifiers, active ingredients, colors, preservatives, and processing aids for the personal care industry; pharmaceutical ingredients and products, such as aspirin, ascorbic acid, caffeine, and ibuprofen, as well as excipients, which include phosphates, polyethylene glycols, polysorbates, methylcellulose, stearyl alcohol, and stearates. Additionally, the company offers transportation and warehousing infrastructure, and chemicals and hazardous materials handling, as well as waste management services. It distributes its products through warehouse and direct-to-consumer delivery channels. Univar Inc. was founded in 1924 and is headquartered in Downers Grove, Illinois.

DSM Company Profile

Koninklijke DSM N.V., a science-based company, engages in health, nutrition, and materials businesses worldwide. The company operates through three segments: Nutrition, Materials, and Innovation Center. The Nutrition segment offers nutrients, such as vitamins, carotenoids, nutritional lipids, and other ingredients to feed, food, pharmaceutical, and personal care industries; and food enzymes, cultures, yeast extracts, savory flavors, hydrocolloids, and other specialty ingredients for use in dairy, baking, beverage, and savory applications. The Materials segment provides Dyneema, a fiber solution serving textiles, commercial marine, and sports segments; high-performance plastics primarily for use in automotive and electronics markets, as well as offers solutions to specialized industries, including water management, breathable textiles, and flexible food packaging; and resins solutions for paints and coatings, fiber optic coatings, and 3D printing applications. The Innovation Center segment offers cellulosic bio-ethanol and bio-based succinic acids; anti-reflective coatings for solar glass; and anti-soiling coatings for use in cleaning and maintaining solar farms in desert-like conditions. This segment also produces biomedical materials and technologies that enable medical device manufacturers to enhance care across various medical specialties. Koninklijke DSM N.V. was founded in 1902 and is headquartered in Heerlen, the Netherlands.

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