Reviewing Covestro (OTCMKTS:COVTY) & Kuraray (OTCMKTS:KURRY)

Covestro (OTCMKTS:COVTY) and Kuraray (OTCMKTS:KURRY) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Covestro and Kuraray’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Covestro	-2.74%	-5.84%	-2.78%
Kuraray	2.69%	6.66%	4.02%

Volatility and Risk

Covestro has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Kuraray has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Covestro and Kuraray, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Covestro	0	2	0	0	2.00
Kuraray	0	0	0	0	0.00

Earnings & Valuation

This table compares Covestro and Kuraray”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Covestro	$15.34 billion	0.85	-$287.84 million	($1.10)	-31.25
Kuraray	$5.47 billion	0.80	$209.38 million	$1.36	29.60

Kuraray has lower revenue, but higher earnings than Covestro. Covestro is trading at a lower price-to-earnings ratio than Kuraray, indicating that it is currently the more affordable of the two stocks.

Summary

Kuraray beats Covestro on 6 of the 10 factors compared between the two stocks.

About Covestro

Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.

About Kuraray

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. It is also involved in the engineering business; design and construction of various plants; outsourcing of logistics services; temporary staffing/introduction business; design, manufacture, construction, and sale of water treatment equipment; travel and insurance agency business; golf course management; management of accommodation facilities and restaurants; manufacture and sale of hook-and loop fasteners and related products; manufacture and sale of dental materials; warehousing and logistics; and manufacturing and sales of methacrylic resin sheets, as well as provides consulting services. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.