Sumitomo Chemcl and Valhi: A Comparison of Basic Materials Companies

Analysts believe Valhi is more favorable than Sumitomo Chemcl despite Sumitomo's higher revenue and earnings.

Published on Feb. 10, 2026

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Valhi (NYSE:VHI) and Sumitomo Chemcl (OTCMKTS:SOMMY) are both basic materials companies, but analysts believe Valhi is the more favorable investment despite Sumitomo Chemcl having higher revenue and earnings. The companies' financial metrics, institutional ownership, and volatility are compared to determine which is the better stock.

Why it matters

This analysis provides investors with a detailed comparison of two major basic materials companies, helping them make informed decisions about which stock to invest in based on factors like valuation, profitability, and risk profile.

The details

Valhi pays a higher annual dividend of $0.32 per share compared to Sumitomo Chemcl's $0.26, but Sumitomo Chemcl has a lower payout ratio of 13.3% versus Valhi's 50%. Sumitomo Chemcl also has higher revenue and earnings per share than Valhi. However, Valhi is trading at a lower price-to-earnings ratio, indicating it is currently more affordable. Valhi has stronger institutional ownership at 3.8% compared to Sumitomo Chemcl's 0.1%, and Valhi's share price is also more volatile with a beta of 1.2 versus Sumitomo Chemcl's 0.28.

  • The analysis was published on February 10, 2026.

The players

Valhi, Inc.

A company that engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally.

Sumitomo Chemical Company, Limited

A company that engages in Chemicals & Plastics, energy and functional materials, IT-related chemicals, health and crop sciences, pharmaceuticals, and other businesses worldwide.

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The takeaway

This analysis highlights the key differences between Valhi and Sumitomo Chemcl, two major players in the basic materials industry. While Sumitomo Chemcl has higher revenue and earnings, Valhi appears to be the more favorable investment according to analysts due to its lower valuation, stronger institutional ownership, and higher potential upside.