H. B. Fuller (NYSE:FUL) versus Green Plains (NASDAQ:GPRE) Head to Head Review

Green Plains (NASDAQ:GPRE) and H. B. Fuller (NYSE:FUL) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Valuation & Earnings

This table compares Green Plains and H. B. Fuller”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Plains	$2.25 billion	0.30	-$82.50 million	($2.92)	-3.32
H. B. Fuller	$3.50 billion	0.89	$130.26 million	$1.85	31.04

H. B. Fuller has higher revenue and earnings than Green Plains. Green Plains is trading at a lower price-to-earnings ratio than H. B. Fuller, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Green Plains has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, H. B. Fuller has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Green Plains and H. B. Fuller, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Plains	2	6	3	1	2.25
H. B. Fuller	1	2	3	2	2.75

Green Plains presently has a consensus target price of $10.00, suggesting a potential upside of 3.20%. H. B. Fuller has a consensus target price of $67.75, suggesting a potential upside of 17.98%. Given H. B. Fuller’s stronger consensus rating and higher possible upside, analysts plainly believe H. B. Fuller is more favorable than Green Plains.

Institutional and Insider Ownership

95.9% of H. B. Fuller shares are held by institutional investors. 1.0% of Green Plains shares are held by company insiders. Comparatively, 2.0% of H. B. Fuller shares are held by company 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.

Profitability

This table compares Green Plains and H. B. Fuller’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Plains	-6.34%	-13.65%	-6.72%
H. B. Fuller	3.28%	11.49%	4.24%

Dividends

Green Plains pays an annual dividend of $0.48 per share and has a dividend yield of 5.0%. H. B. Fuller pays an annual dividend of $0.94 per share and has a dividend yield of 1.6%. Green Plains pays out -16.4% of its earnings in the form of a dividend. H. B. Fuller pays out 50.8% 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. H. B. Fuller has raised its dividend for 57 consecutive years. Green Plains is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

H. B. Fuller beats Green Plains on 14 of the 17 factors compared between the two stocks.

About Green Plains

Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.