Financial Analysis: Tokuyama (OTCMKTS:TKYMY) and Recordati Industria Chimica e Farmaceutica (OTCMKTS:RCDTF)

Tokuyama (OTCMKTS:TKYMY) and Recordati Industria Chimica e Farmaceutica (OTCMKTS:RCDTF) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Tokuyama and Recordati Industria Chimica e Farmaceutica’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokuyama	$2.37 billion	0.58	$122.96 million	$0.85	11.24
Recordati Industria Chimica e Farmaceutica	$1.95 billion	N/A	$329.08 million	$1.93	26.74

Recordati Industria Chimica e Farmaceutica has lower revenue, but higher earnings than Tokuyama. Tokuyama is trading at a lower price-to-earnings ratio than Recordati Industria Chimica e Farmaceutica, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Tokuyama and Recordati Industria Chimica e Farmaceutica, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokuyama	0	0	0	0	N/A
Recordati Industria Chimica e Farmaceutica	0	1	0	0	2.00

Profitability

This table compares Tokuyama and Recordati Industria Chimica e Farmaceutica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokuyama	5.17%	7.16%	3.77%
Recordati Industria Chimica e Farmaceutica	18.51%	31.80%	12.83%

Risk & Volatility

Tokuyama has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Recordati Industria Chimica e Farmaceutica has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Summary

Recordati Industria Chimica e Farmaceutica beats Tokuyama on 6 of the 8 factors compared between the two stocks.

About Tokuyama

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.

About Recordati Industria Chimica e Farmaceutica

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, engages in the research, development, manufacture, and marketing of pharmaceuticals worldwide. The company operates through Specialty and Primary Care and Rare Diseases segments. Its product pipeline includes REC 0559 which is in Phase II for the treatment of Neurotrophic Keratitis; REC 0545 for acute decompensation in maple syrup urine diseases; ISTURISA for endogenous Cushing's syndrome; and CYSTADROPS, an corneal cystine deposits in patients with cystinosis. The company also develops CARBAGLU for hyperammonemia due to NAGS deficiency; QARZIBA, an apeiron for the treatment of high-risk neuroblastoma patients with a partial response at the chemotherapeutical through myeloablative therapy and stem cell transplantation, and relapsed or refractory neuroblastoma. In addition, it offers SYLVANT for the treatment of idiopathic multicentric Castleman diseases; REAGILA for Schizophrenia; and ELIGARD for hormone-dependent prostate cancer, as well as CAPHOSOL, a medical device for treatment of oral mucositis due to chemo and radiation therapy. The company was founded in 1926 and is headquartered in Milan, Italy. Recordati Industria Chimica e Farmaceutica S.p.A. operates as a subsidiary of Rossini S.à R.L.