Head to Head Comparison: Innospec (NASDAQ:IOSP) and Mitsui Chemicals (OTCMKTS:MITUY)

Innospec (NASDAQ:IOSP) and Mitsui Chemicals (OTCMKTS:MITUY) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Valuation and Earnings

This table compares Innospec and Mitsui Chemicals’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innospec	$1.95 billion	1.59	$139.10 million	$5.57	22.32
Mitsui Chemicals	N/A	N/A	N/A	($93.89)	-0.16

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

Analyst Ratings

This is a summary of recent ratings and price targets for Innospec and Mitsui Chemicals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innospec	0	0	0	0	N/A
Mitsui Chemicals	0	0	1	0	3.00

Dividends

Innospec pays an annual dividend of $1.44 per share and has a dividend yield of 1.2%. Mitsui Chemicals pays an annual dividend of $9.11 per share and has a dividend yield of 62.2%. Innospec pays out 25.9% of its earnings in the form of a dividend. Mitsui Chemicals pays out -9.7% 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. Innospec has raised its dividend for 3 consecutive years. Mitsui Chemicals is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Innospec and Mitsui Chemicals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innospec	7.14%	13.69%	9.29%
Mitsui Chemicals	N/A	N/A	N/A

Institutional and Insider Ownership

96.6% of Innospec shares are held by institutional investors. 1.4% of Innospec shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Innospec beats Mitsui Chemicals on 9 of the 12 factors compared between the two stocks.

About Innospec

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties segment offers a range of specialty chemical products that are used as additives in additives in diesel, jet, marine, fuel oil and other fuels. This segment's products are used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications. Its Performance Chemicals segment provides technology-based solutions for its customers' processes or products that focuses on the personal care, home care, agrochemical, construction, mining, and other industrial markets. The company's Oilfield Services segment develops and markets chemical solutions for drilling, completion, fracturing, stimulation, and completion operations; and products for oil and gas production. It sells its products primarily to oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, personal care and home care companies, formulators of agrochemical, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.

About Mitsui Chemicals

Mitsui Chemicals, Inc. engages in the mobility, life and health care, basic and green materials, ICT, and other businesses worldwide. The company's develops elastomers, performance compounds, polypropylene compounds, and other materials; offers vision care materials, nonwoven fabrics and personal care materials, agrochemical products, and oral care and orthopedic materials. It offers semiconductor and assembly solutions, including process tapes, industrial films and sheets, smartphone camera lens materials, high-performance packaging materials, packaging films, and other products; imaging solutions, such as lens materials, materials for reflective films, and LCD and OLED sealing materials; battery material solutions; and converting solutions, including L-LDPE films, heat sealants, barrier coating materials, and packaging adhesives. In addition, the company offers petrochemicals, which comprise ethylene, propylene, high- and low-density polyethylene; basic chemicals, such as phenol, bisphenol, acetone, isopropyl alcohol, methyl isobutyl ketone, terephthalic acid, PET resin, ethylene oxide and glycol, hydroquinone, meta/para-cresol, ammonia, urea, and melamine; and polyurethane raw materials. It sells its products in Japan, China, Asia, the Americas, Europe, and internationally. Mitsui Chemicals, Inc. was founded in 1892 and is headquartered in Tokyo, Japan.