Contrasting Kuraray (OTCMKTS:KURRY) and BioLargo (NASDAQ:BLGO)

Kuraray (OTCMKTS:KURRY) and BioLargo (NASDAQ:BLGO) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Risk and Volatility

Kuraray has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, BioLargo has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of BioLargo shares are held by institutional investors. 20.3% of BioLargo 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.

Profitability

This table compares Kuraray and BioLargo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kuraray	6.33%	6.89%	4.13%
BioLargo	-16.53%	-58.35%	-32.12%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kuraray and BioLargo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuraray	0	0	0	0	N/A
BioLargo	0	0	0	0	N/A

Valuation and Earnings

This table compares Kuraray and BioLargo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuraray	$5.57 billion	0.90	$301.36 million	$3.46	13.01
BioLargo	$12.23 million	5.95	-$3.50 million	($0.03)	-8.16

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

Summary

Kuraray beats BioLargo on 8 of the 11 factors compared between the two stocks.

About Kuraray

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. It is also involved in the engineering business; design and construction of various plants; outsourcing of logistics services; temporary staffing/introduction business; design, manufacture, construction, and sale of water treatment equipment; travel and insurance agency business; golf course management; management of accommodation facilities and restaurants; manufacture and sale of hook-and loop fasteners and related products; manufacture and sale of dental materials; warehousing and logistics; and manufacturing and sales of methacrylic resin sheets, as well as provides consulting services. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

About BioLargo

BioLargo, Inc. invents, develops, and commercializes various platform technologies. Its technologies solve challenging environmental problems comprising per – and polyfluoroalkyl substances (PFAS) water contamination, advanced water and wastewater treatment, industrial odor and volatile organic compounds control, air quality control, infection control, and myriad environmental remediation. The company provides full-service environmental engineering services. BioLargo, Inc. was incorporated in 1991 and is based in Westminster, California.