Head-To-Head Analysis: Haynes International (HAYN) vs. Vale (VALE)
Haynes International (NASDAQ: HAYN) and Vale (NYSE:VALE) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.
This table compares Haynes International and Vale’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Haynes International pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Vale pays an annual dividend of $0.25 per share and has a dividend yield of 2.0%. Haynes International pays out -34.0% of its earnings in the form of a dividend. Vale pays out 23.6% 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. Haynes International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Haynes International and Vale’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Haynes International||$395.21 million||1.31||-$10.19 million||($2.59)||-15.94|
|Vale||$33.97 billion||1.93||$5.51 billion||$1.06||11.84|
Vale has higher revenue and earnings than Haynes International. Haynes International is trading at a lower price-to-earnings ratio than Vale, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
98.6% of Haynes International shares are owned by institutional investors. Comparatively, 19.1% of Vale shares are owned by institutional investors. 4.6% of Haynes International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current recommendations for Haynes International and Vale, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Haynes International currently has a consensus target price of $36.50, indicating a potential downside of 11.58%. Vale has a consensus target price of $13.88, indicating a potential upside of 10.56%. Given Vale’s higher probable upside, analysts plainly believe Vale is more favorable than Haynes International.
Risk & Volatility
Haynes International has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Vale has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.
Vale beats Haynes International on 10 of the 15 factors compared between the two stocks.
Haynes International Company Profile
Haynes International, Inc. (Haynes) is a producer of nickel- and cobalt-based alloys in flat product forms, such as sheet, coil and plate forms. The Company also produces its products as seamless and welded tubulars, and in slab, bar, billet and wire forms. It focuses on developing, manufacturing, marketing and distributing alloys, which are sold in the aerospace, chemical processing and industrial gas turbine industries. Its products consist of high-temperature resistant alloys (HTA) products and corrosion-resistant alloys (CRA) products. Its HTA products are used in manufacturing components for the hot sections of gas turbine engines. Its CRA products are used in a range of applications, such as chemical processing, power plant emissions control, hazardous waste treatment, sour gas production and pharmaceutical vessels. The Company has a four-high Steckel rolling mill used in hot rolling high-performance alloys. The Company has operations in the United States, Europe and China.
Vale Company Profile
Vale S.A. is a global producer of iron ore and iron ore pellets, key raw materials for steelmaking, and producer of nickel. The Company also produces copper, metallurgical and thermal coal, potash, phosphates and other fertilizer nutrients, manganese ore, ferroalloys, platinum group metals, gold, silver and cobalt. The Company’s segments include Ferrous minerals, which comprises the production and extraction of ferrous minerals, as iron ore fines, iron ore pellets and its logistic services, manganese and ferroalloys and others ferrous products and services; Coal, which comprises the extraction of metallurgical and thermal coal and its logistic services; Base metals, which includes the production and extraction of non-ferrous minerals, and are presented as nickel and its byproducts, and copper (copper concentrated), and Others, which comprises sales and expenses of other products, services and investments in joint ventures and associate in other business.
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