Analyzing H. Lundbeck A/S- (HLUYY) & Turning Point Brands (TPB)

Turning Point Brands (NYSE: TPB) and H. Lundbeck A/S- (OTCMKTS:HLUYY) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

Turning Point Brands pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. H. Lundbeck A/S- pays an annual dividend of $0.95 per share and has a dividend yield of 1.4%. Turning Point Brands pays out 14.8% of its earnings in the form of a dividend. H. Lundbeck A/S- pays out 37.8% 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Turning Point Brands and H. Lundbeck A/S-, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Turning Point Brands 0 0 3 0 3.00
H. Lundbeck A/S- 2 0 0 0 1.00

Turning Point Brands presently has a consensus target price of $22.33, suggesting a potential downside of 30.10%. Given Turning Point Brands’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Turning Point Brands is more favorable than H. Lundbeck A/S-.

Volatility and Risk

Turning Point Brands has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, H. Lundbeck A/S- has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500.

Insider and Institutional Ownership

20.1% of Turning Point Brands shares are held by institutional investors. Comparatively, 0.1% of H. Lundbeck A/S- shares are held by institutional investors. 6.9% of Turning Point Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Turning Point Brands and H. Lundbeck A/S-‘s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Turning Point Brands 7.29% 52.48% 9.20%
H. Lundbeck A/S- 18.59% 34.41% 20.00%

Earnings and Valuation

This table compares Turning Point Brands and H. Lundbeck A/S-‘s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Turning Point Brands $285.78 million 2.15 $20.20 million $1.08 29.58
H. Lundbeck A/S- $2.62 billion 5.17 $398.58 million $2.51 27.11

H. Lundbeck A/S- has higher revenue and earnings than Turning Point Brands. H. Lundbeck A/S- is trading at a lower price-to-earnings ratio than Turning Point Brands, indicating that it is currently the more affordable of the two stocks.

Summary

Turning Point Brands beats H. Lundbeck A/S- on 9 of the 16 factors compared between the two stocks.

About Turning Point Brands

Turning Point Brands, Inc., together with its subsidiaries, provides other tobacco products primarily in the United States. It operates through three segments: Smokeless Products, Smoking Products, and NewGen Products. The Smokeless Products segment manufactures and markets moist snuff; and contracts for and markets loose leaf chewing tobacco products. The Smoking Products segment imports and markets cigarette papers, tubes, and related products, as well as finished cigars, make-your-own cigar tobaccos, and cigar wraps; and processes, packages, and markets pipe tobaccos. The NewGen Products segment markets and distributes liquid vapor products, tobacco vaporizer products, and other products without tobacco and nicotine, including e-cigarettes, e-liquids, vaporizers, and other related products; and distributes various assortments of vaping products to non-traditional retail outlets through VaporBeast and Vapor Shark, as well as distributes various vaping related products to individual consumers through Vapor Shark branded retail outlets. The company sells its products under the Zig-Zag, Beech-Nut, Stoker's, Trophy, Havana Blossom, Durango, Our Pride, Big Mountain, Appalachia, Springfield Standard, Snake River, Tequila Sunrise, Fred's Choice, Old Hillside, Red Cap, Tennessee Chew, VaporBeast, and Vapor Shark brands. It sells its products to wholesale distributors and retail merchants in the independent and chain convenience store, tobacco outlet, food store, mass merchandising, and drug store and non-traditional retail channels. The company was formerly known as North Atlantic Holding Company, Inc. and changed its name to Turning Point Brands, Inc. in November 2015. Turning Point Brands, Inc. was incorporated in 2004 and is headquartered in Louisville, Kentucky.

About H. Lundbeck A/S-

H. Lundbeck A/S engages in the research, development, production, and sale of pharmaceuticals for the treatment of psychiatric and neurological disorders in Denmark and internationally. Its products include Abilify Maintena, Brintellix/Trintellix, Cipralex/Lexapro, Northera, Onfi, Rexulti, Sabril, and Xenazine. The company offers pharmaceutical products for the treatment of Alzheimer's disease, depression, Parkinson's disease, Schizophrenia, alcohol dependence, anxiety, Bipolar I disorder, Epilepsy, Huntington's disease, and symptomatic neurogenic orthostatic hypotension. H. Lundbeck A/S sells its products to distributors of pharmaceuticals, pharmacies, and hospitals. The company was founded in 1915 and is headquartered in Valby, Denmark.

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