Dow Chemical (DWDP) vs. Dow Chemical (DOW) Financial Comparison

Dow Chemical (NYSE: DWDP) and Dow Chemical (NYSE:DOW) are both large-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Risk & Volatility

Dow Chemical has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Dow Chemical has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Insider & Institutional Ownership

68.8% of Dow Chemical shares are owned by institutional investors. Comparatively, 67.8% of Dow Chemical shares are owned by institutional investors. 0.9% of Dow Chemical shares are owned by insiders. Comparatively, 0.9% of Dow Chemical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Dow Chemical and Dow Chemical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dow Chemical $48.16 billion 3.50 $4.32 billion $2.08 34.68
Dow Chemical N/A N/A N/A $2.39 27.89

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

Analyst Recommendations

This is a summary of recent recommendations for Dow Chemical and Dow Chemical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dow Chemical 1 3 18 0 2.77
Dow Chemical 0 3 6 0 2.67

Dow Chemical currently has a consensus price target of $79.61, suggesting a potential upside of 10.37%. Dow Chemical has a consensus price target of $72.14, suggesting a potential upside of 8.24%. Given Dow Chemical’s stronger consensus rating and higher probable upside, analysts clearly believe Dow Chemical is more favorable than Dow Chemical.

Profitability

This table compares Dow Chemical and Dow Chemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dow Chemical 5.01% 9.73% 4.18%
Dow Chemical 9.82% 19.01% 6.69%

Dividends

Dow Chemical pays an annual dividend of $1.52 per share and has a dividend yield of 2.1%. Dow Chemical pays an annual dividend of $1.84 per share and has a dividend yield of 2.8%. Dow Chemical pays out 73.1% of its earnings in the form of a dividend. Dow Chemical pays out 77.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dow Chemical has raised its dividend for 6 consecutive years.

Summary

Dow Chemical beats Dow Chemical on 8 of the 13 factors compared between the two stocks.

Dow Chemical Company Profile

DowDuPont Inc. is a holding company formed through the merger of equals between The Dow Chemical Company and E. I. du Pont de Nemours and Company (DuPont). The Company’s business divisions include Agriculture division, Material Science division, and a Specialty Products division. The Agriculture Division offers a complete portfolio of products and technologies, traits and crop protection. The Materials Science Division provides solutions, such as packaging, transportation, infrastructure and customer care. The Specialty Products division provides solution for industrial, safety, energy, food, nutrition, construction, electronics and consumer goods industries. The company provides solutions to a range of markets, including aerospace, automotive, consumer electronics, military, printing, renewable energy, semiconductors, child nutrition, dietary supplements, carpet and apparel, fertilizer, and oil and gas/energy.

Dow Chemical Company Profile

The Dow Chemical Company manufactures and supplies products used primarily as raw materials in the manufacture of customer products and services. The Company’s segments include Agricultural Sciences, which is engaged in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils; Consumer Solutions, which consists of Consumer Care, Dow Automotive Systems, Dow Electronic Materials and Consumer Solutions-Silicones businesses; Infrastructure Solutions, which consists of Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions, Performance Monomers and Infrastructure Solutions-Silicones businesses; Performance Materials & Chemicals, which consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses, and Performance Plastics, which consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons businesses.

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