Swire Pacific (OTCMKTS:SWRAY) and Hikma Pharmaceuticals (OTCMKTS:HKMPF) are both transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Institutional & Insider Ownership
0.1% of Swire Pacific shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Swire Pacific has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Hikma Pharmaceuticals has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.
Earnings and Valuation
This table compares Swire Pacific and Hikma Pharmaceuticals' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Swire Pacific | $10.93 billion | 2.81 | $1.15 billion | $2.51 | 3.15 |
Hikma Pharmaceuticals | $2.21 billion | 3.62 | $486 million | $1.50 | 22.00 |
Swire Pacific has higher revenue and earnings than Hikma Pharmaceuticals. Swire Pacific is trading at a lower price-to-earnings ratio than Hikma Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Dividends
Swire Pacific pays an annual dividend of $0.23 per share and has a dividend yield of 2.9%. Hikma Pharmaceuticals pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Swire Pacific pays out 9.2% of its earnings in the form of a dividend. Hikma Pharmaceuticals pays out 10.7% 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. Swire Pacific is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current recommendations and price targets for Swire Pacific and Hikma Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Swire Pacific | 0 | 0 | 0 | 0 | N/A |
Hikma Pharmaceuticals | 0 | 1 | 5 | 0 | 2.83 |
Profitability
This table compares Swire Pacific and Hikma Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Swire Pacific | N/A | N/A | N/A |
Hikma Pharmaceuticals | N/A | N/A | N/A |
Summary
Swire Pacific beats Hikma Pharmaceuticals on 7 of the 10 factors compared between the two stocks.