Brenntag (OTCMKTS:BNTGY) and HOYA (OTCMKTS:HOCPY) are both large-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares Brenntag and HOYA's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Brenntag | 3.86% | 13.03% | 5.44% |
HOYA | 19.23% | 16.58% | 13.21% |
Valuation and Earnings
This table compares Brenntag and HOYA's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Brenntag | $14.36 billion | 0.95 | $522.70 million | $0.68 | 25.85 |
HOYA | $5.31 billion | 8.78 | $1.05 billion | $2.79 | 44.84 |
HOYA has lower revenue, but higher earnings than Brenntag. Brenntag is trading at a lower price-to-earnings ratio than HOYA, indicating that it is currently the more affordable of the two stocks.
Dividends
Brenntag pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. HOYA pays an annual dividend of $0.68 per share and has a dividend yield of 0.5%. Brenntag pays out 26.5% of its earnings in the form of a dividend. HOYA pays out 24.4% 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.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Brenntag and HOYA, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Brenntag | 1 | 3 | 4 | 0 | 2.38 |
HOYA | 0 | 0 | 2 | 0 | 3.00 |
Institutional & Insider Ownership
0.2% of Brenntag shares are held by institutional investors. Comparatively, 0.2% of HOYA shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Brenntag has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, HOYA has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.
Summary
HOYA beats Brenntag on 9 of the 14 factors compared between the two stocks.