Critical Contrast: Givaudan (OTCMKTS:GVDNY) and H. B. Fuller (NYSE:FUL)

H. B. Fuller (NYSE:FUL) and Givaudan (OTCMKTS:GVDNY) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Dividends

H. B. Fuller pays an annual dividend of $0.94 per share and has a dividend yield of 1.6%. Givaudan pays an annual dividend of $0.96 per share and has a dividend yield of 1.2%. H. B. Fuller pays out 50.8% of its earnings in the form of a dividend. H. B. Fuller has raised its dividend for 57 consecutive years. H. B. Fuller is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

H. B. Fuller has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Givaudan has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for H. B. Fuller and Givaudan, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H. B. Fuller	1	3	2	2	2.63
Givaudan	0	3	0	1	2.50

H. B. Fuller currently has a consensus target price of $65.75, suggesting a potential upside of 10.88%. Given H. B. Fuller’s stronger consensus rating and higher possible upside, equities analysts plainly believe H. B. Fuller is more favorable than Givaudan.

Institutional and Insider Ownership

95.9% of H. B. Fuller shares are held by institutional investors. Comparatively, 0.0% of Givaudan shares are held by institutional investors. 2.0% of H. B. Fuller shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares H. B. Fuller and Givaudan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H. B. Fuller	3.28%	11.49%	4.24%
Givaudan	N/A	N/A	N/A

Earnings & Valuation

This table compares H. B. Fuller and Givaudan”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H. B. Fuller	$3.57 billion	0.90	$130.26 million	$1.85	32.05
Givaudan	$8.42 billion	4.47	$1.24 billion	N/A	N/A

Givaudan has higher revenue and earnings than H. B. Fuller.

Summary

H. B. Fuller beats Givaudan on 12 of the 16 factors compared between the two stocks.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.

About Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.