Sociedad Quimica y Minera (NYSE:SQM) vs. Huabao International (OTCMKTS:HUIHY) Head-To-Head Survey

Sociedad Quimica y Minera (NYSE:SQM) and Huabao International (OTCMKTS:HUIHY) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Dividends

Sociedad Quimica y Minera pays an annual dividend of $2.68 per share and has a dividend yield of 2.9%. Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Sociedad Quimica y Minera pays out 130.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Sociedad Quimica y Minera and Huabao International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sociedad Quimica y Minera	12.85%	9.69%	4.78%
Huabao International	N/A	N/A	N/A

Earnings and Valuation

This table compares Sociedad Quimica y Minera and Huabao International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sociedad Quimica y Minera	$4.58 billion	5.70	$588.14 million	$2.05	44.56
Huabao International	$484.77 million	3.33	-$54.08 million	N/A	N/A

Sociedad Quimica y Minera has higher revenue and earnings than Huabao International.

Risk and Volatility

Sociedad Quimica y Minera has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Huabao International has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Sociedad Quimica y Minera and Huabao International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sociedad Quimica y Minera	1	7	5	1	2.43
Huabao International	0	0	0	0	0.00

Sociedad Quimica y Minera presently has a consensus price target of $71.42, suggesting a potential downside of 21.82%. Given Sociedad Quimica y Minera’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sociedad Quimica y Minera is more favorable than Huabao International.

Institutional & Insider Ownership

12.4% of Sociedad Quimica y Minera shares are held by institutional investors. 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.

Summary

Sociedad Quimica y Minera beats Huabao International on 13 of the 14 factors compared between the two stocks.

About Sociedad Quimica y Minera

Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.

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.