Analyzing Mitsui Chemicals (OTCMKTS:MITUY) and Arcadium Lithium (NYSE:ALTM)

Mitsui Chemicals (OTCMKTS:MITUY) and Arcadium Lithium (NYSE:ALTM) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

This table compares Mitsui Chemicals and Arcadium Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsui Chemicals	N/A	N/A	N/A
Arcadium Lithium	N/A	N/A	N/A

Earnings & Valuation

This table compares Mitsui Chemicals and Arcadium Lithium”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsui Chemicals	N/A	N/A	N/A	($93.89)	-0.11
Arcadium Lithium	$1.21 billion	5.21	$86.15 million	$0.08	73.06

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Mitsui Chemicals and Arcadium Lithium, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsui Chemicals	0	0	0	0	0.00
Arcadium Lithium	0	10	0	0	2.00

Arcadium Lithium has a consensus target price of $11.00, suggesting a potential upside of 88.20%. Given Arcadium Lithium’s stronger consensus rating and higher probable upside, analysts clearly believe Arcadium Lithium is more favorable than Mitsui Chemicals.

Insider and Institutional Ownership

27.0% of Arcadium Lithium shares are owned by institutional investors. 0.4% of Arcadium Lithium shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Mitsui Chemicals pays an annual dividend of $9.11 per share and has a dividend yield of 90.7%. Arcadium Lithium pays an annual dividend of $6.00 per share and has a dividend yield of 102.7%. Mitsui Chemicals pays out -9.7% of its earnings in the form of a dividend. Arcadium Lithium pays out 7,500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Arcadium Lithium beats Mitsui Chemicals on 8 of the 9 factors compared between the two stocks.

About Mitsui Chemicals

Mitsui Chemicals, Inc. engages in the mobility, life and health care, basic and green materials, ICT, and other businesses worldwide. The company's develops elastomers, performance compounds, polypropylene compounds, and other materials; offers vision care materials, nonwoven fabrics and personal care materials, agrochemical products, and oral care and orthopedic materials. It offers semiconductor and assembly solutions, including process tapes, industrial films and sheets, smartphone camera lens materials, high-performance packaging materials, packaging films, and other products; imaging solutions, such as lens materials, materials for reflective films, and LCD and OLED sealing materials; battery material solutions; and converting solutions, including L-LDPE films, heat sealants, barrier coating materials, and packaging adhesives. In addition, the company offers petrochemicals, which comprise ethylene, propylene, high- and low-density polyethylene; basic chemicals, such as phenol, bisphenol, acetone, isopropyl alcohol, methyl isobutyl ketone, terephthalic acid, PET resin, ethylene oxide and glycol, hydroquinone, meta/para-cresol, ammonia, urea, and melamine; and polyurethane raw materials. It sells its products in Japan, China, Asia, the Americas, Europe, and internationally. Mitsui Chemicals, Inc. was founded in 1892 and is headquartered in Tokyo, Japan.

About Arcadium Lithium

Arcadium Lithium plc engages in the production of lithium chemicals products in the Asia Pacific, North America, Europe, the Middle East, Africa, and Latin America. It offers battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal for electric vehicles, electronics, agricultural, industrial, greases, polymers, pharmaceutical, battery, and aerospace applications. The company also owns interest in various properties located in Argentina, Canada, and Western Australia. Arcadium Lithium plc was founded in 1944 and is based in Shannon, Ireland.