Contrasting H. B. Fuller (NYSE:FUL) and RPM International (NYSE:RPM)

H. B. Fuller (NYSE:FUL) and RPM International (NYSE:RPM) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Volatility and Risk

H. B. Fuller has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, RPM International has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for H. B. Fuller and RPM International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H. B. Fuller	0	3	4	1	2.75
RPM International	0	4	12	0	2.75

H. B. Fuller presently has a consensus price target of $62.88, indicating a potential upside of 23.78%. RPM International has a consensus price target of $122.07, indicating a potential upside of 14.10%. Given H. B. Fuller’s higher probable upside, analysts plainly believe H. B. Fuller is more favorable than RPM International.

Institutional & Insider Ownership

95.9% of H. B. Fuller shares are held by institutional investors. Comparatively, 80.9% of RPM International shares are held by institutional investors. 1.8% of H. B. Fuller shares are held by insiders. Comparatively, 1.5% of RPM International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

H. B. Fuller pays an annual dividend of $0.98 per share and has a dividend yield of 1.9%. RPM International pays an annual dividend of $2.28 per share and has a dividend yield of 2.1%. H. B. Fuller pays out 27.3% of its earnings in the form of a dividend. RPM International pays out 42.2% 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 and RPM International has raised its dividend for 51 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
H. B. Fuller	5.56%	12.65%	4.97%
RPM International	8.66%	22.03%	8.91%

Valuation & Earnings

This table compares H. B. Fuller and RPM International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H. B. Fuller	$3.47 billion	0.79	$151.97 million	$3.59	14.15
RPM International	$7.86 billion	1.74	$661.39 million	$5.40	19.81

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

Summary

RPM International beats H. B. Fuller on 11 of the 17 factors compared between the two stocks.

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.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.