Head to Head Comparison: Hawkins (HWKN) and FMC (FMC)
Hawkins (NASDAQ: HWKN) and FMC (NYSE:FMC) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Insider and Institutional Ownership
58.7% of Hawkins shares are owned by institutional investors. Comparatively, 92.4% of FMC shares are owned by institutional investors. 3.7% of Hawkins shares are owned by company insiders. Comparatively, 1.1% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Hawkins and FMC’s 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||0.75||$22.55 million||$3.05||11.10|
|FMC||$2.88 billion||3.72||$535.80 million||$1.70||46.85|
FMC has higher revenue and earnings than Hawkins. Hawkins is trading at a lower price-to-earnings ratio than FMC, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Hawkins and FMC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FMC has a consensus price target of $98.22, indicating a potential upside of 23.32%. Given FMC’s higher possible upside, analysts plainly believe FMC is more favorable than Hawkins.
Risk and Volatility
Hawkins has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, FMC has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.
Hawkins pays an annual dividend of $0.88 per share and has a dividend yield of 2.6%. FMC pays an annual dividend of $0.66 per share and has a dividend yield of 0.8%. Hawkins pays out 28.9% of its earnings in the form of a dividend. FMC pays out 38.8% 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. Hawkins has increased its dividend for 7 consecutive years. Hawkins is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Hawkins and FMC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
FMC beats Hawkins on 11 of the 16 factors compared between the two stocks.
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.
FMC Company Profile
FMC Corporation is a diversified chemical company serving agricultural, consumer and industrial markets. The Company operates in three business segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Lithium. As of December 31, 2016, the FMC Agricultural Solutions segment developed, marketed and sold three classes of crop protection chemicals: insecticides, herbicides and fungicides. The Company’s FMC Agricultural Solutions segment operates in the agrochemicals industry. This segment develops, manufactures and sells a portfolio of professional pest control, and lawn and garden products. The FMC Health and Nutrition segment focuses on nutritional ingredients, health excipients and functional health ingredients. The Company’s FMC Health and Nutrition segment focuses on food ingredients, pharmaceutical excipients and omega-3 oils. The Company’s FMC Lithium segment manufactures lithium for use in a range of lithium products.
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