Contrasting Nippon Paint (NPCPF) and RPM International (RPM)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Nippon Paint N/A N/A N/A
RPM International 5.36% 22.77% 7.12%

Insider & Institutional Ownership

79.7% of RPM International shares are owned by institutional investors. 1.8% of RPM International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

RPM International pays an annual dividend of $1.40 per share and has a dividend yield of 2.2%. Nippon Paint does not pay a dividend. RPM International pays out 47.9% of its earnings in the form of a dividend. RPM International has increased its dividend for 43 consecutive years.

Risk & Volatility

Nippon Paint has a beta of 4.3, meaning that its share price is 330% more volatile than the S&P 500. Comparatively, RPM International has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Nippon Paint and RPM International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nippon Paint 0 0 0 0 N/A
RPM International 0 6 4 0 2.40

RPM International has a consensus target price of $60.71, suggesting a potential downside of 2.87%. Given RPM International’s higher possible upside, analysts clearly believe RPM International is more favorable than Nippon Paint.

Valuation and Earnings

This table compares Nippon Paint and RPM International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nippon Paint N/A N/A N/A N/A N/A
RPM International $5.32 billion 1.56 $337.77 million $2.92 21.41

RPM International has higher revenue and earnings than Nippon Paint.

Summary

RPM International beats Nippon Paint on 10 of the 12 factors compared between the two stocks.

Nippon Paint Company Profile

Nippon Paint Holdings Co., Ltd. manufactures and sells various paints and coatings in Japan, Asia, North America, Europe, and internationally. The company offers automotive coatings, such as paints for use in bumpers and plastic components; trade-use paints for homes, buildings, and bridges; and industrial coatings that are used in a range of products, including construction and farming machinery, exterior building materials, office equipment, and household electrical appliances. It also provides marine coatings, including antifouling paints for fuel-saving; and paints for automobiles refinish, DIY, and road surface markings. In addition, it offers surface treatment products. The company was formerly known as Nippon Paint Co., Ltd. and changed its name to Nippon Paint Holdings Co., Ltd. in October 2014. Nippon Paint Holdings Co., Ltd. was founded in 1881 and is headquartered in Osaka, Japan.

RPM International Company Profile

RPM International Inc. manufactures and sells specialty chemicals for the 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, and flooring and in-plant glazing solutions; solutions for fire stopping and intumescent steel coating, and the manufacturing industry; polymer flooring systems; and fiberglass reinforced plastic gratings and shapes. It also offers corrosion-control coating, containment lining, fire and sound proofing, and insulation products; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; specialty construction products; and amine curing agents, reactive diluents, specialty epoxy resins and other intermediates. 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, and carpet cleaning and disinfecting products; fuel additives; and wood treatments, furniture finishes, and touch-up products. Its Consumer segment offers 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, and hobby paints and cements; caulk, sealant, adhesive, insulating foam, spackling, glazing, and patch and repair products; and nail enamels, polishes, and coating components. The company was founded in 1947 and is headquartered in Medina, Ohio.

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