Head to Head Review: Givaudan (OTCMKTS:GVDNY) vs. FUCHS (OTCMKTS:FUPBY)

FUCHS (OTCMKTS:FUPBY) and Givaudan (OTCMKTS:GVDNY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Dividends

FUCHS pays an annual dividend of $0.17 per share and has a dividend yield of 1.5%. Givaudan pays an annual dividend of $0.96 per share and has a dividend yield of 1.2%. FUCHS pays out 27.0% of its earnings in the form of a dividend.

Profitability

This table compares FUCHS and Givaudan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FUCHS	8.30%	15.46%	11.14%
Givaudan	N/A	N/A	N/A

Institutional & Insider Ownership

0.0% of Givaudan shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for FUCHS and Givaudan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FUCHS	1	0	1	0	2.00
Givaudan	0	0	2	2	3.50

Risk and Volatility

FUCHS has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Givaudan has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Valuation & Earnings

This table compares FUCHS and Givaudan”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FUCHS	$3.81 billion	1.59	$326.79 million	$0.63	18.38
Givaudan	$8.42 billion	N/A	$1.24 billion	N/A	N/A

Givaudan has higher revenue and earnings than FUCHS.

Summary

Givaudan beats FUCHS on 7 of the 12 factors compared between the two stocks.

About FUCHS

Fuchs SE develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, dry coatings, gear and hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, compressor and refrigeration oils, release agents, slideways oils, fluids and industrial oils, textile machine oils, and turbine oils. In addition, the company offers lubricating greases comprising assembly pastes, biodegradable greases, food grade greases, multi-purpose/long-life greases, pastes for extreme temperatures, perfluorinated pastes, and wheel bearing greases, as well as gear boxes, and greases for central lubricating system, extreme temperature, machine tools, plain and roller bearings, rail vehicles, spray cans or rattle cans, and solid lubricants. Further, it provides metal processing lubricants consisting of cleaners, corrosion preventives, cutting and grinding, forming lubricants, and quenching oils; and special application lubricants for application equipment, chain lubrication, dry coatings, food and beverage, gears, sugar processing, railway traffic, plain and roller bearings, glass manufacturing process, hot forming, maintenance, open gears, pastes, release agents, other specialties, special greases, and wind power plants. Additionally, the company offers open gear and surface coating services. The company was formerly known as Fuchs Petrolub SE and changed its name to Fuchs SE in July 2023. Fuchs SE was founded in 1931 and is headquartered in Mannheim, Germany.

About Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.