Hydrogenics (NYSE: LXFR) and Luxfer (NYSE:LXFR) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Dividends

Luxfer pays an annual dividend of $0.25 per share and has a dividend yield of 1.2%. Hydrogenics does not pay a dividend. Luxfer pays out 26.3% of its earnings in the form of a dividend.

Volatility and Risk

Hydrogenics has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Luxfer has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Hydrogenics and Luxfer, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hydrogenics 0 1 2 0 2.67
Luxfer 0 0 1 0 3.00

Hydrogenics presently has a consensus price target of $9.33, indicating a potential upside of 58.19%. Luxfer has a consensus price target of $23.00, indicating a potential upside of 8.18%. Given Hydrogenics’ higher probable upside, equities research analysts clearly believe Hydrogenics is more favorable than Luxfer.

Earnings & Valuation

This table compares Hydrogenics and Luxfer’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hydrogenics $48.05 million 1.90 -$11.14 million ($0.80) -7.38
Luxfer $441.30 million 1.27 $11.50 million $0.95 22.38

Luxfer has higher revenue and earnings than Hydrogenics. Hydrogenics is trading at a lower price-to-earnings ratio than Luxfer, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hydrogenics and Luxfer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hydrogenics -20.82% -46.22% -15.23%
Luxfer 4.51% 19.79% 8.28%

Insider and Institutional Ownership

22.8% of Hydrogenics shares are owned by institutional investors. Comparatively, 82.6% of Luxfer shares are owned by institutional investors. 26.1% of Hydrogenics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Luxfer beats Hydrogenics on 11 of the 16 factors compared between the two stocks.

About Hydrogenics

Hydrogenics Corporation, together with its subsidiaries, designs, develops, and manufactures hydrogen generation products based on water electrolysis technology; and fuel cell products based on proton exchange membrane technology. It operates in two segments, OnSite Generation and Power Systems. The OnSite Generation segment develops products for industrial gas, hydrogen fueling, and renewable energy storage markets. It offers HySTAT fueling station that supply on-site hydrogen for various industrial applications. This segment sells its products to merchant gas companies and oil and gas companies. The Power Systems segment develops products for energy storage, stationary, and motive power applications. This segment offers HyPM platform for mobility applications; and Celerity and CelerityPlus solutions for medium and heavy duty buses and trucks. This segment sells its products to OEMs and other integrators, as well as to military, aerospace, and other early adopters of emerging technologies. The company markets its products through direct sales force and a network of distributors worldwide. It also provides engineering services. Hydrogenics Corporation was founded in 1988 and is headquartered in Mississauga, Canada.

About Luxfer

Luxfer Holdings PLC, a materials technology company, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas-containment devices for transportation, defense and emergency response, healthcare, and general industrial applications in Europe, North America, the Asia Pacific, and internationally. It operates in two segments, Gas Cylinders and Elektron. The Gas Cylinders segment manufactures and markets aluminum and composite cylinders and systems, which are used in self-contained breathing apparatus, fire extinguishers, alternative fuels, bulk gas transportation, specialty gases, medical, beverages, scuba, and aerospace applications under the Luxfer Gas Cylinders brand. This segment also designs and manufactures aluminum, titanium, and magnesium plates for use in aerospace, automotive, rail, and medical products under the Superform brand. The Elektron segment focuses on specialty materials based on magnesium, zirconium, and rare earths. It develops and manufactures magnesium alloys; magnesium powders; and magnesium, copper, and zinc photoengraving plates. This segment also develops and manufactures specialty zirconium products, including zirconium-based materials, zirconium oxides, fiber-optic fuel cells, and other products. The company was founded in 1898 and is based in Manchester, the United Kingdom.

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