Hawkins (NASDAQ:HWKN – Get Free Report) and Shin-Etsu Chemical (OTCMKTS:SHECY – Get Free Report) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Dividends
Hawkins pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. Shin-Etsu Chemical pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. Hawkins pays out 19.4% of its earnings in the form of a dividend. Shin-Etsu Chemical pays out 23.3% 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. Hawkins has increased its dividend for 20 consecutive years.
Volatility and Risk
Hawkins has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Shin-Etsu Chemical has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.
Institutional & Insider Ownership
69.7% of Hawkins shares are owned by institutional investors. Comparatively, 0.0% of Shin-Etsu Chemical shares are owned by institutional investors. 3.7% of Hawkins shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Hawkins and Shin-Etsu Chemical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hawkins | 0 | 3 | 1 | 0 | 2.25 |
| Shin-Etsu Chemical | 0 | 1 | 0 | 0 | 2.00 |
Hawkins presently has a consensus target price of $178.50, suggesting a potential upside of 18.71%. Given Hawkins’ stronger consensus rating and higher possible upside, analysts plainly believe Hawkins is more favorable than Shin-Etsu Chemical.
Profitability
This table compares Hawkins and Shin-Etsu Chemical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hawkins | 7.53% | 15.97% | 8.68% |
| Shin-Etsu Chemical | 18.57% | 10.90% | 8.97% |
Earnings & Valuation
This table compares Hawkins and Shin-Etsu Chemical”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hawkins | $1.08 billion | 2.88 | $81.55 million | $4.12 | 36.50 |
| Shin-Etsu Chemical | $17.10 billion | 4.20 | $3.15 billion | $0.86 | 21.06 |
Shin-Etsu Chemical has higher revenue and earnings than Hawkins. Shin-Etsu Chemical is trading at a lower price-to-earnings ratio than Hawkins, indicating that it is currently the more affordable of the two stocks.
Summary
Hawkins beats Shin-Etsu Chemical on 10 of the 17 factors compared between the two stocks.
About Hawkins
Hawkins, Inc. is a specialty chemical and ingredient company founded in 1938. It supplies products and services to customers in water treatment, industrial markets, and health and nutrition. Its water treatment business serves municipal and industrial customers with chemicals and related services for water and wastewater treatment. The industrial business supplies chemicals and services to manufacturers and other commercial customers, while the health and nutrition business provides ingredients used in food, beverage, and other products.
About Shin-Etsu Chemical
Shin-Etsu Chemical Co., Ltd. is a Japan-based chemical manufacturer founded in 1926. The company develops and produces materials used in construction, electronics, healthcare, and other industries. Its products include polyvinyl chloride (PVC) and other infrastructure materials; semiconductor silicon wafers and photomask substrates; silicones; and cellulose derivatives used in applications such as pharmaceuticals and food products. Headquartered in Tokyo, Shin-Etsu serves customers around the world through manufacturing and sales operations in Japan and other international markets.
Receive News & Ratings for Hawkins Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hawkins and related companies with MarketBeat.com's FREE daily email newsletter.
