Head-To-Head Survey: Huabao International (OTCMKTS:HUIHY) & Mativ (NYSE:MATV)

Mativ (NYSE:MATV) and Huabao International (OTCMKTS:HUIHY) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Dividends

Mativ pays an annual dividend of $0.40 per share and has a dividend yield of 4.5%. Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Mativ pays out 29.9% of its earnings in the form of a dividend. Mativ has raised its dividend for 1 consecutive years. Mativ is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Mativ has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Huabao International has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mativ and Huabao International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mativ	$1.99 billion	0.25	-$337.40 million	$1.34	6.63
Huabao International	$484.77 million	3.33	-$54.08 million	N/A	N/A

Huabao International has lower revenue, but higher earnings than Mativ.

Profitability

This table compares Mativ and Huabao International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mativ	3.86%	11.77%	2.57%
Huabao International	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Mativ and Huabao International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mativ	1	1	0	0	1.50
Huabao International	0	0	0	0	0.00

Institutional & Insider Ownership

95.0% of Mativ shares are owned by institutional investors. 1.8% of Mativ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Mativ beats Huabao International on 10 of the 13 factors compared between the two stocks.

About Mativ

Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the filtration, protective solutions, release liners, and healthcare end-markets. This segment sells its products directly, as well as through sales agents and distributors. The Fiber-Based Solutions segment produces packaging and specialty paper products. This segment provides premium packaging products that are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing retail, cosmetics, spirits, and electronics end-use markets; and premium papers, which are used in commercial printing services, advertising collateral, stationery, corporate identity packages and brochures, direct mail, business cards, and other uses. It also offers branded paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. This segment distributes its products through authorized paper distributors, converters, retailers, and specialty business converters, as well as directly to end-users. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

About Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.