BASF India vs PPG Industries Which Outperforms?

BASF India and PPG Industries are both prominent players in the chemical industry, with a strong global presence. While BASF India primarily focuses on manufacturing and supplying chemicals for various industries, PPG Industries is known for its innovative coatings, paints, and specialty materials. Both companies have shown steady growth and profitability over the years, but their stocks have performed differently in the market. Understanding the key metrics and factors affecting their stock performance can help investors make informed decisions.

BASF India or PPG Industries?

When comparing BASF India and PPG Industries, 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 PPG Industries.

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 0.27%, while PPG Industries has a dividend yield of 2.14%. 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, PPG Industries reports a 5-year dividend growth of 6.43% year and a payout ratio of 41.52%.

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 37.56 and PPG Industries's P/E ratio at 19.47. 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 6.96 while PPG Industries's P/B ratio is 3.72.

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 PPG Industries's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BASF India's ROE at 20.18% and PPG Industries's ROE at 18.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹5513.35 for BASF India and $122.45 for PPG Industries. Over the past year, BASF India's prices ranged from ₹2868.00 to ₹8750.00, with a yearly change of 205.09%. PPG Industries's prices fluctuated between $118.07 and $151.16, with a yearly change of 28.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.