Hawkins (NASDAQ: HWKN) and Univar (NYSE:UNVR) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Valuation and Earnings
This table compares Hawkins and Univar’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Univar has higher revenue and earnings than Hawkins.
Risk & Volatility
Hawkins has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Univar has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Hawkins and Univar, as provided by MarketBeat.com.
||Strong Buy Ratings
Univar has a consensus price target of $33.00, indicating a potential upside of 14.46%. Given Univar’s higher probable upside, analysts plainly believe Univar is more favorable than Hawkins.
Institutional & Insider Ownership
58.4% of Hawkins shares are held by institutional investors. Comparatively, 98.2% of Univar shares are held by institutional investors. 3.7% of Hawkins shares are held by company insiders. Comparatively, 0.6% of Univar shares are held by company insiders. 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.
This table compares Hawkins and Univar’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Hawkins pays an annual dividend of $0.88 per share and has a dividend yield of 2.6%. Univar does not pay a dividend.
Univar beats Hawkins on 8 of the 13 factors compared between the two stocks.
Hawkins Company Profile
Hawkins, Inc. blends, manufactures, and distributes chemicals and specialty ingredients primarily in the United States. It operates in three segments: Industrial, Water Treatment, and Health and Nutrition. The Industrial segment provides industrial chemicals, products, and services primarily to the agriculture, chemical processing, electronics, energy, food, pharmaceutical, plating, and power generation industries. This segment primarily offers acids, alkalis, and industrial and food-grade salts. It also receives, stores, and distributes various chemicals in bulk quantities, including liquid caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide, and aqua ammonia. In addition, this segment manufactures sodium hypochlorite, and agricultural products, as well as certain food-grade products comprising liquid phosphate, lactates, and other blended products; repackages water treatment and bulk industrial chemicals; and performs custom blending of certain chemicals, and contract and private label bleach packaging. The Water Treatment segment provides chemicals, equipment, and solutions for potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water. The Health and Nutrition segment provides ingredient distribution, processing, and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement, and other nutritional food and health and wellness products. Its products portfolio includes minerals, botanicals and herbs, vitamins and amino acids, excipients, joint products, sweeteners, and enzymes. Hawkins, Inc. was founded in 1938 and is headquartered in Roseville, Minnesota.
Univar Company Profile
Univar Inc. is a distributor of commodity and specialty chemicals. The Company operates through four segments: Univar USA (USA); Univar Canada (Canada); Univar Europe and the Middle East and Africa (EMEA), and Rest of World. The Company’s USA segment supplies a range of commodity and specialty chemicals, as well as services to a range of end markets, including manufacturing and industrial production sectors in the United States. In the United States, it services these multiple end markets with one-to-three day order times from nearby facilities. It repackages and blends bulk chemicals for shipment by its transportation fleet, as well as common carriers. Its Canadian operations are regionally focused, supplying a range of commodity and specialty chemicals to the local customer base. In Eastern Canada, it primarily focuses on industrial markets, such as food ingredients and products, pharmaceutical ingredients and finished products, coatings and adhesives, and chemical manufacturing.
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