DowDuPont (NYSE: DWDP) and Hawkins (NASDAQ:HWKN) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
69.7% of DowDuPont shares are held by institutional investors. Comparatively, 58.4% of Hawkins shares are held by institutional investors. 0.9% of DowDuPont shares are held by insiders. Comparatively, 3.7% of Hawkins shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for DowDuPont and Hawkins, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DowDuPont presently has a consensus target price of $80.26, indicating a potential upside of 11.12%. Given DowDuPont’s higher possible upside, equities analysts clearly believe DowDuPont is more favorable than Hawkins.
DowDuPont pays an annual dividend of $1.52 per share and has a dividend yield of 2.1%. Hawkins pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. DowDuPont pays out 96.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hawkins pays out 28.9% of its earnings in the form of a dividend. Hawkins is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares DowDuPont and Hawkins’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
DowDuPont has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Hawkins has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Valuation and Earnings
This table compares DowDuPont and Hawkins’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DowDuPont||$62.48 billion||2.69||$1.46 billion||$1.57||46.01|
|Hawkins||$483.59 million||0.78||$22.55 million||$3.05||11.57|
DowDuPont has higher revenue and earnings than Hawkins. Hawkins is trading at a lower price-to-earnings ratio than DowDuPont, indicating that it is currently the more affordable of the two stocks.
DowDuPont beats Hawkins on 9 of the 15 factors compared between the two stocks.
DowDuPont Company Profile
DowDuPont Inc. is a holding company formed through the merger of equals between The Dow Chemical Company and E. I. du Pont de Nemours and Company (DuPont). The Company’s business divisions include Agriculture division, Material Science division, and a Specialty Products division. The Agriculture Division offers a complete portfolio of products and technologies, traits and crop protection. The Materials Science Division provides solutions, such as packaging, transportation, infrastructure and customer care. The Specialty Products division provides solution for industrial, safety, energy, food, nutrition, construction, electronics and consumer goods industries. The company provides solutions to a range of markets, including aerospace, automotive, consumer electronics, military, printing, renewable energy, semiconductors, child nutrition, dietary supplements, carpet and apparel, fertilizer, and oil and gas/energy.
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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