Pola Orbis (OTCMKTS:PORBF) vs. Covestro (OTC:COVTY) Financial Analysis

Pola Orbis (OTCMKTS:PORBF) and Covestro (OTC:COVTY) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Earnings and Valuation

This table compares Pola Orbis and Covestro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pola Orbis	$1.13 billion	1.95	$68.15 million	$0.28	35.54
Covestro	$15.56 billion	0.77	-$214.29 million	($0.75)	-42.21

Pola Orbis has higher earnings, but lower revenue than Covestro. Covestro is trading at a lower price-to-earnings ratio than Pola Orbis, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Pola Orbis has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Covestro has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Profitability

This table compares Pola Orbis and Covestro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pola Orbis	5.40%	6.45%	5.36%
Covestro	-1.84%	-3.91%	-1.89%

Analyst Ratings

This is a breakdown of current ratings and price targets for Pola Orbis and Covestro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pola Orbis	0	0	0	0	0.00
Covestro	0	2	0	0	2.00

Summary

Pola Orbis beats Covestro on 7 of the 10 factors compared between the two stocks.

About Pola Orbis

Pola Orbis Holdings Inc., through its subsidiaries, develops, manufactures, and sells cosmetics and related products in Japan and internationally. It operates through Beauty Care and Real Estate segments. The Beauty Care segment offers cosmetics; skincare products; health foods; and fashion products, such as women's underwear, women's apparel, and jewelry under the POLA, ORBIS, Jurlique, H2O PLUS, THREE, DECENCIA, Amplitude, ITRIM, FIVEISM × THREE, and FUJIMI brand names. The Real Estate segment is involved in the leasing of office buildings and residential properties. The company also involves in the management and operation of buildings. It sells its products through department, directly operated retail, duty-free stores, Internet, and cosmetics stores, as well as through door-to-door sales, and mail-order sales. Pola Orbis Holdings Inc. was founded in 1929 and is headquartered in Tokyo, Japan.

About Covestro

Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People’s Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.