Head to Head Analysis: Celanese (NYSE:CE) and Huabao International (OTCMKTS:HUIHY)

Celanese (NYSE:CE) and Huabao International (OTCMKTS:HUIHY) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares Celanese and Huabao International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celanese	$9.54 billion	0.78	-$1.17 billion	($10.60)	-6.40
Huabao International	$484.77 million	3.33	-$54.08 million	N/A	N/A

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

Dividends

Celanese pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Celanese pays out -1.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Celanese and Huabao International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celanese	1	9	9	0	2.42
Huabao International	0	0	0	0	0.00

Celanese presently has a consensus price target of $64.71, suggesting a potential downside of 4.57%. Given Celanese’s stronger consensus rating and higher probable upside, analysts plainly believe Celanese is more favorable than Huabao International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Celanese	-12.15%	8.75%	1.94%
Huabao International	N/A	N/A	N/A

Institutional and Insider Ownership

98.9% of Celanese shares are held by institutional investors. 0.3% of Celanese shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Celanese has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Huabao International has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Summary

Celanese beats Huabao International on 10 of the 14 factors compared between the two stocks.

About Celanese

Celanese Corporation, a chemical and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. It operates through Engineered Materials and Acetyl Chain. The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. In addition, it provides redispersible powders (RDP) for use in construction applications, including flooring, plasters, insulation, tiling, and waterproofing. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.

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.