FMC (NYSE: FMC) and Hawkins (NASDAQ:HWKN) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
FMC pays an annual dividend of $0.66 per share and has a dividend yield of 0.8%. Hawkins pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. FMC pays out 16.5% of its earnings in the form of a dividend. Hawkins pays out 28.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FMC has increased its dividend for 7 consecutive years.
FMC has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Hawkins has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
This is a summary of current ratings and price targets for FMC and Hawkins, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FMC currently has a consensus price target of $98.22, suggesting a potential upside of 17.56%. Given FMC’s higher probable upside, analysts plainly believe FMC is more favorable than Hawkins.
Valuation & Earnings
This table compares FMC and Hawkins’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FMC||$2.88 billion||3.90||$535.80 million||$3.99||20.94|
|Hawkins||$483.59 million||0.76||$22.55 million||$3.05||11.34|
FMC has higher revenue and earnings than Hawkins. Hawkins is trading at a lower price-to-earnings ratio than FMC, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.4% of FMC shares are held by institutional investors. Comparatively, 58.7% of Hawkins shares are held by institutional investors. 1.1% of FMC shares are held by company insiders. Comparatively, 3.7% of Hawkins shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares FMC and Hawkins’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
FMC beats Hawkins on 14 of the 16 factors compared between the two stocks.
FMC Company Profile
FMC Corporation is a diversified chemical company serving agricultural, consumer and industrial markets. The Company operates in three business segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Lithium. As of December 31, 2016, the FMC Agricultural Solutions segment developed, marketed and sold three classes of crop protection chemicals: insecticides, herbicides and fungicides. The Company’s FMC Agricultural Solutions segment operates in the agrochemicals industry. This segment develops, manufactures and sells a portfolio of professional pest control, and lawn and garden products. The FMC Health and Nutrition segment focuses on nutritional ingredients, health excipients and functional health ingredients. The Company’s FMC Health and Nutrition segment focuses on food ingredients, pharmaceutical excipients and omega-3 oils. The Company’s FMC Lithium segment manufactures lithium for use in a range of lithium products.
Hawkins Company Profile
Hawkins, Inc. distributes, blends and manufactures chemicals and specialty ingredients for its customers in a range of industries. The Company conducts its business in three segments: Industrial, Water Treatment, and Health and Nutrition. Its Industrial segment is engaged in providing industrial chemicals, products and services to various industries, such as agriculture, chemical processing, electronics and energy. Its Water Treatment segment is engaged in providing chemicals, equipment and solutions for potable water, municipal and industrial wastewater, industrial process water and non-residential swimming pool water. The Health and Nutrition segment is engaged in providing ingredient distribution, processing and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, and health and wellness products.
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