Comparing Methanex (NASDAQ:MEOH) and DuPont de Nemours (NYSE:DD)
by Sarita Garza · The Markets DailyMethanex (NASDAQ:MEOH – Get Free Report) and DuPont de Nemours (NYSE:DD – Get Free Report) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.
Risk and Volatility
Methanex has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, DuPont de Nemours has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
Profitability
This table compares Methanex and DuPont de Nemours’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Methanex | 2.21% | 5.35% | 2.03% |
| DuPont de Nemours | -7.03% | 7.37% | 4.69% |
Earnings & Valuation
This table compares Methanex and DuPont de Nemours”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Methanex | $3.59 billion | 1.29 | $79.88 million | $1.13 | 52.98 |
| DuPont de Nemours | $6.85 billion | 2.82 | -$779.00 million | ($1.86) | -25.39 |
Methanex has higher earnings, but lower revenue than DuPont de Nemours. DuPont de Nemours is trading at a lower price-to-earnings ratio than Methanex, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Methanex and DuPont de Nemours, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Methanex | 1 | 4 | 6 | 1 | 2.58 |
| DuPont de Nemours | 1 | 3 | 12 | 1 | 2.76 |
Methanex presently has a consensus target price of $55.50, indicating a potential downside of 7.30%. DuPont de Nemours has a consensus target price of $51.86, indicating a potential upside of 9.83%. Given DuPont de Nemours’ stronger consensus rating and higher possible upside, analysts plainly believe DuPont de Nemours is more favorable than Methanex.
Insider and Institutional Ownership
73.5% of Methanex shares are owned by institutional investors. Comparatively, 74.0% of DuPont de Nemours shares are owned by institutional investors. 1.0% of Methanex shares are owned by company insiders. Comparatively, 0.6% of DuPont de Nemours shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Methanex pays an annual dividend of $0.74 per share and has a dividend yield of 1.2%. DuPont de Nemours pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. Methanex pays out 65.5% of its earnings in the form of a dividend. DuPont de Nemours pays out -43.0% 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. Methanex has raised its dividend for 4 consecutive years. DuPont de Nemours is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
DuPont de Nemours beats Methanex on 11 of the 17 factors compared between the two stocks.
About Methanex
Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.
About DuPont de Nemours
DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.