Financial Analysis: Hexagon (HXGBY) and Its Competitors

Hexagon (OTCMKTS:HXGBY) is one of 378 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its competitors? We will compare Hexagon to related businesses based on the strength of its dividends, analyst recommendations, valuation, earnings, institutional ownership, profitability and risk.

Volatility & Risk

Hexagon has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Hexagon’s competitors have a beta of -0.32, suggesting that their average stock price is 132% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Hexagon	$6.14 billion	$698.53 million	42.46
Hexagon Competitors	$3.99 billion	$191.02 million	-6.67

Hexagon has higher revenue and earnings than its competitors. Hexagon is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Hexagon and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hexagon	11.66%	10.21%	6.22%
Hexagon Competitors	-184.71%	-150.36%	-6.96%

Dividends

Hexagon pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Hexagon pays out 33.3% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.8% and pay out 66.4% of their earnings in the form of a dividend.

Insider and Institutional Ownership

43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 16.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Hexagon and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hexagon	1	3	1	0	2.00
Hexagon Competitors	1989	7504	10221	626	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 18.06%. Given Hexagon’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Hexagon has less favorable growth aspects than its competitors.

Summary

Hexagon beats its competitors on 8 of the 15 factors compared.

Hexagon Company Profile

Hexagon AB (publ) provides geospatial and industrial enterprise solutions worldwide. The company offers analysis and management, machine control, embedded electronics, monitoring, and planning and optimization solutions to agriculture division; 3D design and visualization, enterprise asset and asset lifecycle management, OT/ICS cyber security, engineering and schematics, enterprise project performance, operation and maintenance, procurement, fabrication, and construction services for asset lifecycle intelligence division; GNSS and SMART antennas, anti-jam systems, autonomy kits and services, correction services, GNSS/INS receivers and post processing, resilience and integrity technology, and visualization software for autonomy and positioning division; and 3D surveillance, AEC and survey software, geospatial content, machine control, digital realities platform, laser scanning and measurement tools, levels, total stations, airborne, monitoring, document and verification solutions, detection, GNSS, and mobile mapping system to geosystem division. It also provides CAD CAM and CAE software, CNC simulation and computed tomography software, measurement and inspection hardware and software, manufacturing project management, digital transformation for manufacturing, environmental health and safety, and quality management systems to manufacturing intelligence division; and HxGN mine protect, operate, monitoring, measure, and plan services, as well as HxGN autonomous and underground mining services to mining division. In addition, the company offers GIS, imagery analysis and data management, collaboration, government, transportation, and defense solutions; and utility GIS and outage management services, and public safety and geospatial platform to safety, infrastructure, and geospatial division. The company was incorporated in 1975 and is based in Stockholm, Sweden.