Contrasting Ferro (FOE) and Nippon Paint (NPCPF)

Ferro (NYSE:FOE) and Nippon Paint (OTCMKTS:NPCPF) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ferro $1.40 billion 1.11 $57.05 million $1.29 14.34
Nippon Paint N/A N/A N/A N/A N/A

Ferro has higher revenue and earnings than Nippon Paint.

Risk and Volatility

Ferro has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Nippon Paint has a beta of 4.34, indicating that its share price is 334% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Ferro and Nippon Paint, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ferro 0 0 5 0 3.00
Nippon Paint 0 0 0 0 N/A

Ferro presently has a consensus price target of $28.50, indicating a potential upside of 54.05%. Given Ferro’s higher possible upside, analysts clearly believe Ferro is more favorable than Nippon Paint.

Insider and Institutional Ownership

96.4% of Ferro shares are owned by institutional investors. 2.0% of Ferro shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Ferro 4.34% 32.63% 7.10%
Nippon Paint N/A N/A N/A

Summary

Ferro beats Nippon Paint on 8 of the 9 factors compared between the two stocks.

Ferro Company Profile

Ferro Corporation produces specialty materials in the United States and internationally. It operates through four business units: Tile Coating Systems; Porcelain Enamel; Performance Colors and Glass; and Color Solutions. The company offers frits, porcelain and other glass enamels, glazes, stains, decorating colors, pigments, inks, polishing materials, dielectrics, electronic glasses, and other specialty coatings. Its products are used in appliances, automobiles, building and renovation, electronics, household furnishings, industrial products, packaging, and sanitary applications. The company markets and sells its products directly, as well as through agents and distributors. Its customers include manufacturers of ceramic tile, construction materials, automobile parts, automobiles, architectural and container glass, and electronic components and devices. Ferro Corporation was founded in 1919 and is headquartered in Mayfield Heights, Ohio.

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.

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