Financial Review: CVR Partners (NYSE:UAN) & Sumitomo Chemcl (OTCMKTS:SOMMY)

Sumitomo Chemcl (OTCMKTS:SOMMY – Get Free Report) and CVR Partners (NYSE:UAN – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Valuation & Earnings

This table compares Sumitomo Chemcl and CVR Partners”s gross revenue, earnings per share (EPS) and valuation.

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sumitomo Chemcl and CVR Partners, as reported by MarketBeat.

Institutional and Insider Ownership

43.8% of CVR Partners shares are owned by institutional investors. 0.4% of CVR Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Sumitomo Chemcl and CVR Partners’ net margins, return on equity and return on assets.

Dividends

Sumitomo Chemcl pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. CVR Partners pays an annual dividend of $24.32 per share and has a dividend yield of 19.1%. Sumitomo Chemcl pays out 13.3% of its earnings in the form of a dividend. CVR Partners pays out 160.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CVR Partners has increased its dividend for 1 consecutive years. CVR Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Sumitomo Chemcl has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, CVR Partners has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Summary

CVR Partners beats Sumitomo Chemcl on 11 of the 16 factors compared between the two stocks.

About Sumitomo Chemcl

(Get Free Report)

Sumitomo Chemical Company, Limited engages in Chemicals & Plastics, energy and functional materials, IT-related chemicals, health and crop sciences, pharmaceuticals, and other businesses worldwide. Its Essential Chemicals & Plastics segment offers synthetic resins, such as polyethylene, polypropylene, and polymethyl methacrylate resins; raw materials for synthetic fibers; and various industrial chemicals. The company's Energy & Functional Materials segment provides alumina and aluminum products used for energy products; resorcinol for tires, wood adhesives, flame retardants, and ultraviolet ray absorbants; polymer additives and rubber chemicals; synthetic rubber for tires, shoes, construction materials, and other applications; and engineering plastics and lithium-ion secondary battery materials for use in electronic components and next-generation vehicles. Its IT-Related Chemicals segment provides polarizing films, touch screen sensor panels, and color resists and polymer OLED for LC and OLED displays; photoresists and high-purity chemicals for the semiconductor manufacturing process; and compound semiconductor materials for antenna switches and other components of communication terminal equipment. The company's Health & Crop Sciences segment offers crop protection chemicals, fertilizers, feed additives, and household insecticides; active pharmaceutical ingredients and intermediates; and products to control infectious diseases. Its Pharmaceuticals segment provides prescription and diagnostic pharmaceuticals. The company's Others segment supplies electric power and steam; designs, constructs, and supervises chemical plants; provides transportation and warehousing services; and conducts physical property and environmental analysis. Sumitomo Chemical Company, Limited was founded in 1913 and is headquartered in Tokyo, Japan.

About CVR Partners

(Get Free Report)

CVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States. The company offers ammonia products for agricultural and industrial customers; and urea ammonium nitrate products to agricultural customers, as well as retailers and distributors. CVR GP, LLC serves as the general partner of the company. CVR Partners, LP was incorporated in 2007 and is based in Sugar Land, Texas. CVR Partners, LP is a subsidiary of CVR Energy, Inc.