Critical Survey: HighCom Global Security (HCGS) & Versum Materials (VSM)

HighCom Global Security (OTCMKTS:HCGS) and Versum Materials (NYSE:VSM) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares HighCom Global Security and Versum Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HighCom Global Security -33.08% -26.59% -24.09%
Versum Materials 14.29% 264.89% 18.34%

Volatility & Risk

HighCom Global Security has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Versum Materials has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Institutional & Insider Ownership

91.9% of Versum Materials shares are owned by institutional investors. 16.0% of HighCom Global Security shares are owned by insiders. Comparatively, 0.5% of Versum Materials shares are owned 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.

Earnings and Valuation

This table compares HighCom Global Security and Versum Materials’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HighCom Global Security $6.22 million 0.67 -$2.11 million N/A N/A
Versum Materials $1.13 billion 3.15 $193.00 million $1.91 17.07

Versum Materials has higher revenue and earnings than HighCom Global Security.

Analyst Ratings

This is a summary of recent recommendations for HighCom Global Security and Versum Materials, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HighCom Global Security 0 0 0 0 N/A
Versum Materials 0 1 6 0 2.86

Versum Materials has a consensus target price of $46.67, suggesting a potential upside of 43.15%. Given Versum Materials’ higher probable upside, analysts plainly believe Versum Materials is more favorable than HighCom Global Security.

Dividends

Versum Materials pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. HighCom Global Security does not pay a dividend. Versum Materials pays out 12.6% of its earnings in the form of a dividend.

Summary

Versum Materials beats HighCom Global Security on 10 of the 13 factors compared between the two stocks.

About HighCom Global Security

HighCom Global Security, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes security products and personal protective gears in the United States and internationally. It offers body armors, striker ballistic helmets, guardian hard armor plates, trooper soft armor vests, ballistic shields and plates, civilian armor system ballistic panels, and stingray ballistic blankets. The company also provides BlastWrap, a technology component to mitigate blast effects and suppresses post-blast fires. Its customers include independent distributors, Department of Defense, Department of Homeland Security, other federal government agencies, local police department, foreign entities, the United Nations, and law enforcement and corrections bodies. The company was formerly known as BlastGard International, Inc. and changed its name to HighCom Global Security, Inc. in June 2017. The company was founded in 2003 and is based in Columbus, Ohio. HighCom Global Security, Inc. is a subsidiary of 2538093 Ontario Inc.

About Versum Materials

Versum Materials, Inc. develops, manufactures, transports, and handles specialty materials for the semiconductor and display industries in the United States, Taiwan, South Korea, China, Europe, and rest of Asia. It operates in two segments, Materials, and Delivery Systems and Services (DS&S). The Materials segment provides specialty chemicals and materials used in semiconductors, as well as specialty gases used in the semiconductor manufacturing process, including high purity process materials for deposition, metallization, and chamber cleaning and etching; chemicals mechanical planarization slurries; organosilanes; organometallics and liquid dopants for thin film deposition; and formulated chemical products for post-etch cleaning primarily for the manufacture of silicon and compound semiconductors, and thin film transistor liquid crystal displays. The DS&S segment develops, designs, manufactures, and sells bulk gas, specialty gas, and specialty chemical cabinets and systems, which are used to manage the delivery of key materials into the semiconductor manufacturing process; and flow and temperature control systems and analytical systems to capture data. It also engages in the project management for installation and startup of the gas and chemical delivery systems, and inventory management; and provision of spare parts, equipment upgrades, equipment maintenance, and training services. In addition, this segment offers on-site services to assist customers in managing the inventory of gases and chemicals comprising ordering, product changes and monitoring, quality assurance, operation of delivery systems, and managing the bulk gas and specialty gas operations. The company was founded in 2015 and is headquartered in Tempe, Arizona.

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