Contrasting Asahi Glass (OTCMKTS:ASGLY) and Ashland (NYSE:ASH)

Asahi Glass (OTCMKTS:ASGLY) and Ashland (NYSE:ASH) are both mid-cap materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Asahi Glass and Ashland”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asahi Glass	$13.77 billion	0.49	$463.39 million	$0.38	16.32
Ashland	$1.86 billion	1.88	$4.00 million	$0.08	956.42

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

Risk & Volatility

Asahi Glass has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Ashland has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Dividends

Asahi Glass pays an annual dividend of $0.16 per share and has a dividend yield of 2.6%. Ashland pays an annual dividend of $1.68 per share and has a dividend yield of 2.2%. Asahi Glass pays out 42.1% of its earnings in the form of a dividend. Ashland pays out 2,100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ashland has increased its dividend for 16 consecutive years. Asahi Glass is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

94.0% of Ashland shares are held by institutional investors. 1.3% of Ashland shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Asahi Glass and Ashland, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asahi Glass	0	1	0	0	2.00
Ashland	0	4	7	0	2.64

Ashland has a consensus target price of $75.30, suggesting a potential downside of 1.59%. Given Ashland’s stronger consensus rating and higher probable upside, analysts clearly believe Ashland is more favorable than Asahi Glass.

Profitability

This table compares Asahi Glass and Ashland’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asahi Glass	2.88%	3.60%	2.10%
Ashland	0.21%	8.17%	3.36%

Summary

Ashland beats Asahi Glass on 10 of the 17 factors compared between the two stocks.

About Asahi Glass

Asahi Glass, now known as AGC Inc., is a Japanese materials manufacturer founded in 1907. The company changed its corporate name to AGC in 2018 and serves customers in industries including construction, automotive, electronics, and healthcare. Its products include architectural and automotive glass, glass for display applications, chemicals, ceramics, and other advanced materials. AGC also provides life-science services, including contract development and manufacturing for pharmaceutical and biotechnology companies.

About Ashland

Ashland Inc. is a specialty chemicals company that develops and supplies ingredients and additives for businesses across a range of industries. Its products include pharmaceutical ingredients and excipients, personal care ingredients, and specialty additives used in coatings, construction materials and other applications. The company traces its roots to 1924, when it was established as Ashland Refining Company in Kentucky. Over time, Ashland shifted from its origins in oil refining toward specialty chemicals and ingredients.