Analyzing Daiwa Securities Group (OTCMKTS:DSEEY) and Victrex (OTCMKTS:VTXPF)

Victrex (OTCMKTS:VTXPF) and Daiwa Securities Group (OTCMKTS:DSEEY) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Volatility & Risk

Victrex has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Daiwa Securities Group has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Earnings and Valuation

This table compares Victrex and Daiwa Securities Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victrex	$376.57 million	N/A	$75.71 million	N/A	N/A
Daiwa Securities Group	$8.85 billion	1.21	$838.75 million	$0.58	11.73

Daiwa Securities Group has higher revenue and earnings than Victrex.

Profitability

This table compares Victrex and Daiwa Securities Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victrex	N/A	N/A	N/A
Daiwa Securities Group	9.07%	6.56%	0.35%

Insider and Institutional Ownership

0.8% of Victrex shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Victrex and Daiwa Securities Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victrex	0	1	0	0	2.00
Daiwa Securities Group	0	0	0	0	N/A

Summary

Daiwa Securities Group beats Victrex on 5 of the 7 factors compared between the two stocks.

About Victrex

Victrex plc, through its subsidiaries, engages in the manufacture and sale of polymer solutions worldwide. The company operates through two segments, Sustainable Solutions and Medical. It develops PEEK and PAEK based polymer solutions, and semi-finished and finished parts. The company also provides specialist solutions for medical device manufacturers; sells thermoplastic polymers; sustainable solutions for energy and industrial, VAR, automotive, aerospace, and electronics markets; and engages in trading activities. It serves automotive, aerospace, energy and industrial, electronics, and medical markets. Victrex plc was incorporated in 1993 and is headquartered in Thornton-Cleveleys, the United Kingdom.

About Daiwa Securities Group

Daiwa Securities Group Inc., together with its subsidiaries, primarily operates as a securities broker-dealer in Japan and internationally. The company operates through four segments: Retail, Wholesale, Asset Management, and Investment. The Retail segment offers products and services related to asset management, including equities, bonds, investment trusts, wrap account services, insurance, banking services, inheritance-related services, etc. for individual investors and unlisted companies. The Wholesale segment offers sales and trading services of equities and bonds, as well as of foreign exchange and derivative products primarily for institutional investors and corporations; and investment banking services, such as underwriting of securities, M&A advisory, etc. The Asset Management segment structures and manages investment trusts primarily for individual investors and financial institutions; provides investment advisory services; and manages assets. The Investment segment invests in monetary claims, loans, private equities, and real estate properties, as well as energy, infrastructure, and resource sectors. The company also offers research and consulting, and information services, as well as engages in the office work activities. In addition, it is involved in the securities-related, investment advisory and agency, and investment management businesses, as well as lending and borrowing of real estate properties. The company was formerly known as Daiwa Securities Co. Ltd. and changed its name to Daiwa Securities Group Inc. in 1999. Daiwa Securities Group Inc. was founded in 1902 and is headquartered in Tokyo, Japan.