BASF India vs Dow Which Performs Better?

Both BASF India and Dow are major players in the chemical industry, with operations spanning across various sectors such as agriculture, materials, and industrial solutions. BASF India is a subsidiary of the global giant BASF SE, while Dow is a standalone entity known for its innovation and sustainability efforts. Both companies have shown resilience and adaptability in the face of economic challenges and have consistently delivered strong financial performance. Investors looking for exposure to the chemical sector may consider analyzing the stocks of BASF India and Dow for potential investment opportunities.

BASF India or Dow?

When comparing BASF India and Dow, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between BASF India and Dow.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. BASF India has a dividend yield of 0.26%, while Dow has a dividend yield of 6.64%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BASF India reports a 5-year dividend growth of 21.67% year and a payout ratio of 0.00%. On the other hand, Dow reports a 5-year dividend growth of 0.00% year and a payout ratio of 185.20%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with BASF India P/E ratio at 37.72 and Dow's P/E ratio at 27.92. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BASF India P/B ratio is 6.99 while Dow's P/B ratio is 1.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BASF India has seen a 5-year revenue growth of 1.30%, while Dow's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BASF India's ROE at 20.18% and Dow's ROE at 5.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹5575.35 for BASF India and $41.77 for Dow. Over the past year, BASF India's prices ranged from ₹2868.00 to ₹8750.00, with a yearly change of 205.09%. Dow's prices fluctuated between $41.73 and $60.69, with a yearly change of 45.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.