DOW vs. VMC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at DOW and VMC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | DOW | VMC |
|---|---|---|
| Company Name | Dow Inc. | Vulcan Materials Company |
| Country | United States | United States |
| GICS Sector | Materials | Materials |
| GICS Industry | Chemicals | Construction Materials |
| Market Capitalization | 15.82 billion USD | 37.16 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 20, 2019 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of DOW and VMC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | DOW | VMC |
|---|---|---|
| 5-Day Price Return | 3.76% | -4.19% |
| 13-Week Price Return | -1.84% | -3.79% |
| 26-Week Price Return | -25.48% | 4.46% |
| 52-Week Price Return | -49.03% | -2.48% |
| Month-to-Date Return | -3.86% | -3.08% |
| Year-to-Date Return | -42.86% | 9.08% |
| 10-Day Avg. Volume | 13.09M | 1.41M |
| 3-Month Avg. Volume | 14.51M | 0.92M |
| 3-Month Volatility | 44.06% | 20.03% |
| Beta | 0.79 | 1.08 |
Profitability
Return on Equity (TTM)
DOW
-6.58%
Chemicals Industry
- Max
- 29.52%
- Q3
- 13.18%
- Median
- 6.58%
- Q1
- 1.08%
- Min
- -12.53%
DOW has a negative Return on Equity of -6.58%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
VMC
13.40%
Construction Materials Industry
- Max
- 29.88%
- Q3
- 15.53%
- Median
- 10.48%
- Q1
- 5.28%
- Min
- -5.22%
VMC’s Return on Equity of 13.40% is on par with the norm for the Construction Materials industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
DOW
-2.77%
Chemicals Industry
- Max
- 21.17%
- Q3
- 9.38%
- Median
- 4.26%
- Q1
- 0.56%
- Min
- -8.93%
DOW has a negative Net Profit Margin of -2.77%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
VMC
14.19%
Construction Materials Industry
- Max
- 36.53%
- Q3
- 21.31%
- Median
- 9.30%
- Q1
- 4.87%
- Min
- -4.83%
VMC’s Net Profit Margin of 14.19% is aligned with the median group of its peers in the Construction Materials industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
DOW
-0.86%
Chemicals Industry
- Max
- 27.38%
- Q3
- 14.36%
- Median
- 7.98%
- Q1
- 3.60%
- Min
- -9.26%
DOW has a negative Operating Profit Margin of -0.86%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
VMC
20.83%
Construction Materials Industry
- Max
- 37.17%
- Q3
- 20.83%
- Median
- 13.76%
- Q1
- 8.68%
- Min
- -2.06%
VMC’s Operating Profit Margin of 20.83% is around the midpoint for the Construction Materials industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | DOW | VMC |
|---|---|---|
| Return on Equity (TTM) | -6.58% | 13.40% |
| Return on Assets (TTM) | -1.93% | 6.60% |
| Net Profit Margin (TTM) | -2.77% | 14.19% |
| Operating Profit Margin (TTM) | -0.86% | 20.83% |
| Gross Profit Margin (TTM) | 7.27% | 28.23% |
Financial Strength
Current Ratio (MRQ)
DOW
1.94
Chemicals Industry
- Max
- 3.31
- Q3
- 2.27
- Median
- 1.75
- Q1
- 1.40
- Min
- 0.73
DOW’s Current Ratio of 1.94 aligns with the median group of the Chemicals industry, indicating that its short-term liquidity is in line with its sector peers.
VMC
2.23
Construction Materials Industry
- Max
- 5.54
- Q3
- 3.10
- Median
- 2.01
- Q1
- 1.13
- Min
- 0.76
VMC’s Current Ratio of 2.23 aligns with the median group of the Construction Materials industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
DOW
1.04
Chemicals Industry
- Max
- 1.84
- Q3
- 1.00
- Median
- 0.65
- Q1
- 0.40
- Min
- 0.00
DOW’s leverage is in the upper quartile of the Chemicals industry, with a Debt-to-Equity Ratio of 1.04. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
VMC
0.50
Construction Materials Industry
- Max
- 1.12
- Q3
- 0.82
- Median
- 0.61
- Q1
- 0.29
- Min
- 0.00
VMC’s Debt-to-Equity Ratio of 0.50 is typical for the Construction Materials industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
DOW
3.42
Chemicals Industry
- Max
- 56.43
- Q3
- 27.42
- Median
- 9.48
- Q1
- 3.36
- Min
- -9.39
DOW’s Interest Coverage Ratio of 3.42 is positioned comfortably within the norm for the Chemicals industry, indicating a standard and healthy capacity to cover its interest payments.
VMC
7.88
Construction Materials Industry
- Max
- 54.89
- Q3
- 34.24
- Median
- 7.96
- Q1
- 4.28
- Min
- -6.24
VMC’s Interest Coverage Ratio of 7.88 is positioned comfortably within the norm for the Construction Materials industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | DOW | VMC |
|---|---|---|
| Current Ratio (MRQ) | 1.94 | 2.23 |
| Quick Ratio (MRQ) | 1.28 | 1.56 |
| Debt-to-Equity Ratio (MRQ) | 1.04 | 0.50 |
| Interest Coverage Ratio (TTM) | 3.42 | 7.88 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
DOW
11.14%
Chemicals Industry
- Max
- 6.88%
- Q3
- 3.88%
- Median
- 2.60%
- Q1
- 1.39%
- Min
- 0.00%
DOW’s Dividend Yield of 11.14% is exceptionally high, placing it well above the typical range for the Chemicals industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
VMC
0.68%
Construction Materials Industry
- Max
- 6.67%
- Q3
- 4.45%
- Median
- 2.04%
- Q1
- 0.79%
- Min
- 0.00%
VMC’s Dividend Yield of 0.68% is in the lower quartile for the Construction Materials industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
DOW
401.61%
Chemicals Industry
- Max
- 192.00%
- Q3
- 109.29%
- Median
- 62.55%
- Q1
- 30.93%
- Min
- 0.00%
At 401.61%, DOW’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Chemicals industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
VMC
22.91%
Construction Materials Industry
- Max
- 101.83%
- Q3
- 76.08%
- Median
- 37.66%
- Q1
- 14.03%
- Min
- 0.00%
VMC’s Dividend Payout Ratio of 22.91% is within the typical range for the Construction Materials industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | DOW | VMC |
|---|---|---|
| Dividend Yield (TTM) | 11.14% | 0.68% |
| Dividend Payout Ratio (TTM) | 401.61% | 22.91% |
Valuation
Price-to-Earnings Ratio (TTM)
DOW
--
Chemicals Industry
- Max
- 48.58
- Q3
- 28.65
- Median
- 19.88
- Q1
- 14.03
- Min
- 6.73
P/E Ratio data for DOW is currently unavailable.
VMC
33.82
Construction Materials Industry
- Max
- 31.22
- Q3
- 17.70
- Median
- 13.01
- Q1
- 7.35
- Min
- 2.50
At 33.82, VMC’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Construction Materials industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
DOW
0.38
Chemicals Industry
- Max
- 4.61
- Q3
- 2.21
- Median
- 0.95
- Q1
- 0.58
- Min
- 0.17
In the lower quartile for the Chemicals industry, DOW’s P/S Ratio of 0.38 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
VMC
4.80
Construction Materials Industry
- Max
- 3.63
- Q3
- 1.99
- Median
- 1.46
- Q1
- 0.59
- Min
- 0.21
With a P/S Ratio of 4.80, VMC trades at a valuation that eclipses even the highest in the Construction Materials industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
DOW
0.93
Chemicals Industry
- Max
- 4.60
- Q3
- 2.61
- Median
- 1.50
- Q1
- 0.96
- Min
- 0.33
DOW’s P/B Ratio of 0.93 is in the lower quartile for the Chemicals industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
VMC
4.65
Construction Materials Industry
- Max
- 4.21
- Q3
- 2.26
- Median
- 1.26
- Q1
- 0.67
- Min
- 0.11
At 4.65, VMC’s P/B Ratio is at an extreme premium to the Construction Materials industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | DOW | VMC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 33.82 |
| Price-to-Sales Ratio (TTM) | 0.38 | 4.80 |
| Price-to-Book Ratio (MRQ) | 0.93 | 4.65 |
| Price-to-Free Cash Flow Ratio (TTM) | 25.48 | 35.87 |