NL Industries (NL) versus Hubbell (HUBB) Financial Analysis
NL Industries (NYSE: NL) and Hubbell (NYSE:HUBB) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Hubbell pays an annual dividend of $3.08 per share and has a dividend yield of 2.3%. NL Industries does not pay a dividend. Hubbell pays out 59.3% of its earnings in the form of a dividend.
This table compares NL Industries and Hubbell’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for NL Industries and Hubbell, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NL Industries currently has a consensus target price of $14.00, indicating a potential upside of 4.87%. Hubbell has a consensus target price of $129.00, indicating a potential downside of 5.18%. Given NL Industries’ higher possible upside, analysts plainly believe NL Industries is more favorable than Hubbell.
Institutional & Insider Ownership
9.3% of NL Industries shares are owned by institutional investors. Comparatively, 85.1% of Hubbell shares are owned by institutional investors. 0.1% of NL Industries shares are owned by insiders. Comparatively, 1.3% of Hubbell shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares NL Industries and Hubbell’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NL Industries||$108.90 million||5.97||$15.32 million||$1.57||8.50|
|Hubbell||$3.51 billion||2.12||$293.00 million||$5.19||26.21|
Hubbell has higher revenue and earnings than NL Industries. NL Industries is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NL Industries has a beta of 2.87, suggesting that its stock price is 187% more volatile than the S&P 500. Comparatively, Hubbell has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
Hubbell beats NL Industries on 9 of the 16 factors compared between the two stocks.
About NL Industries
NL Industries, Inc. is a holding company. The Company operates in the component products industry through its subsidiary, CompX International Inc. (CompX). The Company operates in the chemicals industry through its non-controlling interest in Kronos Worldwide, Inc. (Kronos). The Company, through Compx, manufactures engineered components that are sold to a range of industries, including recreational transportation (including boats), postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. Kronos is a global producer and marketer of value-added titanium dioxide pigments (TiO2), a base industrial product used in imparting whiteness, brightness and opacity to a range of customer applications and end use markets, including coatings, plastics, paper, inks, food, cosmetics, and other industrial and consumer products. Kronos has production facilities in Europe and North America.
Hubbell Incorporated is engaged in the design, manufacture and sale of electrical and electronic products for a range of non-residential and residential construction, industrial and utility applications. The Company’s segments include Electrical and the Power. The Electrical segment consists of businesses that sell stock and custom products, including standard and special application wiring device products, rough-in electrical products, lighting fixtures and controls, components and assemblies for the natural gas distribution market, as well as other electrical equipment. In addition, certain businesses design and manufacture a range of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry.
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