Critical Survey: Dow Chemical (DOW) & Hawkins (HWKN)
Dow Chemical (NYSE: DOW) and Hawkins (NASDAQ:HWKN) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Valuation and Earnings
This table compares Dow Chemical and Hawkins’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hawkins||$483.59 million||0.78||$22.55 million||$3.05||11.57|
Risk & Volatility
Dow Chemical has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Hawkins has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
Institutional and Insider Ownership
67.8% of Dow Chemical shares are owned by institutional investors. Comparatively, 58.6% of Hawkins shares are owned by institutional investors. 0.9% of Dow Chemical shares are owned by company insiders. Comparatively, 3.7% of Hawkins shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dow Chemical pays an annual dividend of $1.84 per share and has a dividend yield of 2.8%. Hawkins pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. Dow Chemical pays out 77.0% 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.
This table compares Dow Chemical and Hawkins’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Dow Chemical and Hawkins, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dow Chemical presently has a consensus target price of $72.14, suggesting a potential upside of 8.24%. Given Dow Chemical’s higher probable upside, equities research analysts plainly believe Dow Chemical is more favorable than Hawkins.
Dow Chemical beats Hawkins on 7 of the 13 factors compared between the two stocks.
Dow Chemical Company Profile
The Dow Chemical Company manufactures and supplies products used primarily as raw materials in the manufacture of customer products and services. The Company’s segments include Agricultural Sciences, which is engaged in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils; Consumer Solutions, which consists of Consumer Care, Dow Automotive Systems, Dow Electronic Materials and Consumer Solutions-Silicones businesses; Infrastructure Solutions, which consists of Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions, Performance Monomers and Infrastructure Solutions-Silicones businesses; Performance Materials & Chemicals, which consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses, and Performance Plastics, which consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons businesses.
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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