H. B. Fuller (NYSE:FUL) vs. Novozymes A/S (OTCMKTS:NVZMY) Head to Head Review

H. B. Fuller (NYSE:FUL) and Novozymes A/S (OTCMKTS:NVZMY) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

95.9% of H. B. Fuller shares are held by institutional investors. Comparatively, 0.0% of Novozymes A/S shares are held by institutional investors. 1.8% of H. B. Fuller shares are held 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.

Earnings and Valuation

This table compares H. B. Fuller and Novozymes A/S”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H. B. Fuller	$3.47 billion	0.96	$151.97 million	$3.03	20.12
Novozymes A/S	$4.70 billion	5.40	$660.28 million	$1.40	43.76

Novozymes A/S has higher revenue and earnings than H. B. Fuller. H. B. Fuller is trading at a lower price-to-earnings ratio than Novozymes A/S, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares H. B. Fuller and Novozymes A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H. B. Fuller	4.62%	11.84%	4.52%
Novozymes A/S	14.22%	6.57%	4.33%

Analyst Ratings

This is a summary of current recommendations and price targets for H. B. Fuller and Novozymes A/S, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H. B. Fuller	1	2	3	1	2.57
Novozymes A/S	1	0	0	1	2.50

H. B. Fuller currently has a consensus target price of $65.50, indicating a potential upside of 7.45%. Given H. B. Fuller’s stronger consensus rating and higher possible upside, analysts clearly believe H. B. Fuller is more favorable than Novozymes A/S.

Dividends

H. B. Fuller pays an annual dividend of $0.98 per share and has a dividend yield of 1.6%. Novozymes A/S pays an annual dividend of $0.81 per share and has a dividend yield of 1.3%. H. B. Fuller pays out 32.3% of its earnings in the form of a dividend. Novozymes A/S pays out 57.9% 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. 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 & Volatility

H. B. Fuller has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Novozymes A/S has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Summary

H. B. Fuller beats Novozymes A/S on 11 of the 17 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 Novozymes A/S

Novozymes A/S produces and sells industrial enzymes, microorganisms, and probiotics in Denmark, rest of Europe, North America, Asia Pacific, the Middle East, Africa, Latin America, and internationally. The company offers protein solutions for the food and beverage industry. It also offers industrial hygiene, drain openers, hard surface, medical cleaning, septic tanks, ware washing, and professional laundry services. In addition, the company provides dishwashing, softener, microbial and medical cleaning services. Further, it provides corn, cotton, forages, peanuts, pulses, soybeans, wheat, small grains, bioyield, and biocontrol solutions; warm water species, recirculating aquaculture system; animal health and nutrition solutions; fiber modification, bleach boosting, deposit control, and starch modification solutions. Additionally, the company provides carbon capture, leather and textiles solutions; enzyme solutions, including corn and wheat separation, liquefaction, saccharification, filtration, isomerization, maltose, and specialties solutions; warm water species and recirculating aquaculture system solutions; human health solutions, comprising brain, oral, protective and immune, and gastrointestinal health solutions; ethanol, biodiesel, renewable diesel, education, wastewater, and sewage sludge, and renewable diesel solutions; agriculture and industry, biogas food waste, food waste, biocatalysis, cell culture, diagnostics, enzyme, and biogas solutions. Furthermore, it provides lipases, proteases, oxidoreductases, and carbohydrases. Novozymes A/S was founded in 1925 and is based in Bagsvaerd, Denmark.