Critical Review: Hexagon Composites ASA (HXGCF) vs. The Competition

Hexagon Composites ASA (OTCMKTS:HXGCF) is one of 70 publicly-traded companies in the “Containers & Packaging” industry, but how does it contrast to its peers? We will compare Hexagon Composites ASA to similar companies based on the strength of its dividends, analyst recommendations, risk, profitability, institutional ownership, earnings and valuation.

Earnings and Valuation

This table compares Hexagon Composites ASA and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hexagon Composites ASA	N/A	N/A	1.56
Hexagon Composites ASA Competitors	$6.12 billion	$200.41 million	12.61

Hexagon Composites ASA’s peers have higher revenue and earnings than Hexagon Composites ASA. Hexagon Composites ASA is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Hexagon Composites ASA pays an annual dividend of $0.25 per share and has a dividend yield of 16.2%. Hexagon Composites ASA pays out 25.3% of its earnings in the form of a dividend. As a group, “Containers & Packaging” companies pay a dividend yield of 4.8% and pay out -80.4% of their earnings in the form of a dividend.

Insider and Institutional Ownership

16.8% of Hexagon Composites ASA shares are held by institutional investors. Comparatively, 54.4% of shares of all “Containers & Packaging” companies are held by institutional investors. 13.5% of shares of all “Containers & Packaging” companies are held by company insiders. 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.

Analyst Ratings

This is a breakdown of recent ratings for Hexagon Composites ASA and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hexagon Composites ASA	0	0	1	0	3.00
Hexagon Composites ASA Competitors	387	2333	3392	84	2.51

As a group, “Containers & Packaging” companies have a potential upside of 32.89%. Given Hexagon Composites ASA’s peers higher probable upside, analysts clearly believe Hexagon Composites ASA has less favorable growth aspects than its peers.

Profitability

This table compares Hexagon Composites ASA and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hexagon Composites ASA	N/A	N/A	N/A
Hexagon Composites ASA Competitors	-29.40%	-33.58%	1.99%

Summary

Hexagon Composites ASA peers beat Hexagon Composites ASA on 8 of the 13 factors compared.

About Hexagon Composites ASA

Hexagon Composites ASA, together with its subsidiaries, engages in the manufacture and sale of composite pressure cylinders and fuel systems for alternative fuels worldwide. The company operates through Hexagon Agility, Hexagon Ragasco, and Hexagon Digital Wave segments. The Hexagon Agility segment provides clean fuel solutions for commercial vehicles, passenger vehicles, and gaseous energy transportation; and gas distribution solutions. The Hexagon Ragasco segment manufacturers composite liquefied petroleum gas (LPG) cylinders for leisure, household, and industrial applications. The Hexagon Digital Wave segment offers cylinder testing and monitoring technology solutions that reduce cylinder and system down-time and inspection costs while improving inspection accuracy. Hexagon Composites ASA was founded in 1985 and is headquartered in Ålesund, Norway.