Financial Review: JSR CORP/ADR (JSCPY) vs. Linde (LIN)

Linde (NYSE:LIN) and JSR CORP/ADR (OTCMKTS:JSCPY) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Linde and JSR CORP/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Linde 1 4 8 0 2.54
JSR CORP/ADR 0 0 0 0 N/A

Linde currently has a consensus target price of $184.33, indicating a potential upside of 15.06%. Given Linde’s higher possible upside, analysts plainly believe Linde is more favorable than JSR CORP/ADR.

Valuation & Earnings

This table compares Linde and JSR CORP/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Linde $11.44 billion 4.03 $1.25 billion $5.85 27.39
JSR CORP/ADR $3.81 billion 0.89 $272.18 million $1.34 11.14

Linde has higher revenue and earnings than JSR CORP/ADR. JSR CORP/ADR is trading at a lower price-to-earnings ratio than Linde, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Linde and JSR CORP/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Linde 11.93% 28.54% 9.41%
JSR CORP/ADR 7.37% 7.94% 5.10%

Insider & Institutional Ownership

75.3% of Linde shares are held by institutional investors. Comparatively, 0.0% of JSR CORP/ADR shares are held by institutional investors. 0.2% of Linde shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Linde pays an annual dividend of $2.47 per share and has a dividend yield of 1.5%. JSR CORP/ADR pays an annual dividend of $0.43 per share and has a dividend yield of 2.9%. Linde pays out 42.2% of its earnings in the form of a dividend. JSR CORP/ADR pays out 32.1% 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. JSR CORP/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Linde has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, JSR CORP/ADR has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Summary

Linde beats JSR CORP/ADR on 12 of the 15 factors compared between the two stocks.

Linde Company Profile

Linde plc operates as an industrial gas and engineering company. The company offers oxygen, nitrogen, argon, rare gases, carbon monoxide, carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene, shielding gases, and noble gases, as well as develops and distributes procedures and systems for gas applications. It also offers pharmaceutical and medical gases and services to the healthcare industry; and support services, technical equipment, and safety products, as well as develops hydrogen technology. In addition, the company supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders; offers electric arc, plasma and wire spray, and high-velocity oxy-fuel equipment; and distributes hardgoods and welding equipment purchased from independent manufacturers. Further, it provides planning, project development, and construction services with a focus on market segments, such as olefin, natural gas, air separation, and hydrogen and synthesis gas plants. The company serves customers worldwide. Linde plc was founded in 1907 and is based in Guildford, the United Kingdom.

JSR CORP/ADR Company Profile

JSR Corporation provides petrochemical products, and fine chemicals and other products in Japan and internationally. The company operates through three segments: Elastomers Business, Plastics Business, and Fine Chemicals and Other Products Business. The Elastomers Business segment offers general purpose synthetic rubbers, including emulsion polymerization styrene-butadiene (SB), solution polymerization SB, styrene, polybutadiene and isoprene rubbers, etc.; special-purpose synthetic rubbers, such as nitrile, butyl, ethylene propylene, NV and NE polymer blend rubbers, etc.; and thermoplastic elastomers comprising butadiene type TPE, hydrogenated polymer, styrene-butadiene type TPE, styrene-isoprene type TPE, olefin type TPE, etc. It also provides emulsion products consisting of paper coating latex, SB latex, acrylic emulsions, asphalt pavement modifiers, etc.; and performance chemicals, including high-functional dispersants, organic/inorganic hybrid coating materials, battery materials, and thermal management materials. The Plastics Business segment offers synthetic resins, such as acrylonitrile-butadiene-styrene plastic and acrylonitrile-ethylene-propylene-styrene plastic products. The Fine Chemicals and Other Products Business segment provides semiconductor materials comprising lithography materials, chemical mechanical planarization materials, and packaging materials; display materials consisting of liquid crystal display and flat panel display materials; and optical materials, including precision and processing business materials. It also offers life sciences materials, such as in-vitro diagnostic and research reagents, and bioprocess materials; and lithium ion capacitors. JSR Corporation has collaboration with Aspect Biosystems to develop human liver tissue. The company was formerly known as Japan Synthetic Rubber Co., Ltd. JSR Corporation was founded in 1957 and is headquartered in Tokyo, Japan.

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