Mitsubishi Chemical Group (OTCMKTS:MTLHF) versus Orion (NYSE:OEC) Head to Head Analysis

Mitsubishi Chemical Group (OTCMKTS:MTLHF) and Orion (NYSE:OEC) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Mitsubishi Chemical Group and Orion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Chemical Group	N/A	N/A	N/A
Orion	4.64%	21.25%	5.50%

Earnings and Valuation

This table compares Mitsubishi Chemical Group and Orion’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi Chemical Group	N/A	N/A	N/A	$25.94	0.22
Orion	$1.89 billion	0.73	$103.50 million	$1.73	13.64

Orion has higher revenue and earnings than Mitsubishi Chemical Group. Mitsubishi Chemical Group is trading at a lower price-to-earnings ratio than Orion, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Mitsubishi Chemical Group and Orion, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Chemical Group	0	0	0	0	N/A
Orion	0	2	2	0	2.50

Orion has a consensus target price of $28.00, suggesting a potential upside of 18.64%. Given Orion’s higher possible upside, analysts clearly believe Orion is more favorable than Mitsubishi Chemical Group.

Institutional & Insider Ownership

14.7% of Mitsubishi Chemical Group shares are owned by institutional investors. Comparatively, 94.3% of Orion shares are owned by institutional investors. 6.3% of Orion shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Mitsubishi Chemical Group pays an annual dividend of $9.56 per share and has a dividend yield of 165.2%. Orion pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Mitsubishi Chemical Group pays out 36.8% of its earnings in the form of a dividend. Orion pays out 4.6% 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.

Summary

Orion beats Mitsubishi Chemical Group on 10 of the 12 factors compared between the two stocks.

About Mitsubishi Chemical Group

Mitsubishi Chemical Group Corporation provides performance products, chemicals, industrial gases, health care products, and other products in Japan and internationally. The company offers polyester films for various applications, including optical materials, for electronic displays; industrial materials for electronic components, automotive parts, and medical equipment; and packaging materials for food and other products. It also provides high-performance engineering plastics, as well as advanced solutions; industrial materials, such as MMA, petrochemicals, carbon products, and industrial gages; and pharma and regenerative medicines. In addition, the company offers engineering, transportation, and warehousing services. Mitsubishi Chemical Group Corporation was incorporated in 2005 and is headquartered in Tokyo, Japan.

About Orion

Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. It also provides rubber carbon black products for applications in mechanical rubber goods, as well as in tires under the ECORAX brand name; and acetylene-based conductive additives for lithium-ion batteries and other applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.