Huabao International (OTCMKTS:HUIHY) vs. Sensient Technologies (NYSE:SXT) Financial Review

Huabao International (OTCMKTS:HUIHY) and Sensient Technologies (NYSE:SXT) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Huabao International and Sensient Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huabao International	0	0	0	0	0.00
Sensient Technologies	0	1	2	0	2.67

Sensient Technologies has a consensus target price of $110.00, indicating a potential upside of 15.16%. Given Sensient Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Sensient Technologies is more favorable than Huabao International.

Risk and Volatility

Huabao International has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Sensient Technologies has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Dividends

Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.4%. Sensient Technologies pays an annual dividend of $1.64 per share and has a dividend yield of 1.7%. Sensient Technologies pays out 51.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

90.9% of Sensient Technologies shares are owned by institutional investors. 1.2% of Sensient Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Huabao International and Sensient Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huabao International	$469.25 million	1.92	-$53.62 million	N/A	N/A
Sensient Technologies	$1.56 billion	2.61	$124.67 million	$3.17	30.13

Sensient Technologies has higher revenue and earnings than Huabao International.

Profitability

This table compares Huabao International and Sensient Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huabao International	N/A	N/A	N/A
Sensient Technologies	8.56%	12.56%	6.60%

Summary

Sensient Technologies beats Huabao International on 12 of the 14 factors compared between the two stocks.

About Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.

About Sensient Technologies

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Specialty Markets trade names. Sensient Technologies Corporation was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.