Comparing Cabot (CBT) and HighCom Global Security (HCGS)

Cabot (NYSE:CBT) and HighCom Global Security (OTCMKTS:HCGS) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Institutional and Insider Ownership

86.4% of Cabot shares are held by institutional investors. 2.2% of Cabot shares are held by company insiders. Comparatively, 16.0% of HighCom Global Security shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Cabot and HighCom Global Security, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot 0 0 6 0 3.00
HighCom Global Security 0 0 0 0 N/A

Cabot presently has a consensus price target of $76.00, indicating a potential upside of 67.43%. Given Cabot’s higher possible upside, equities research analysts plainly believe Cabot is more favorable than HighCom Global Security.

Profitability

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

Net Margins Return on Equity Return on Assets
Cabot -3.49% 18.82% 8.03%
HighCom Global Security -26.57% -24.48% -22.26%

Risk & Volatility

Cabot has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, HighCom Global Security has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cabot and HighCom Global Security’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cabot $3.24 billion 0.84 -$113.00 million $4.03 11.26
HighCom Global Security $6.22 million 0.62 -$2.11 million N/A N/A

HighCom Global Security has lower revenue, but higher earnings than Cabot.

Dividends

Cabot pays an annual dividend of $1.32 per share and has a dividend yield of 2.9%. HighCom Global Security does not pay a dividend. Cabot pays out 32.8% of its earnings in the form of a dividend. Cabot has raised its dividend for 6 consecutive years.

Summary

Cabot beats HighCom Global Security on 10 of the 14 factors compared between the two stocks.

About Cabot

Cabot Corporation operates as a specialty chemicals and performance materials company. The company offers carbon black, a form of elemental carbon used to enhance the physical properties of the systems and applications in which it is incorporated; and rubber blacks for use as a rubber reinforcing agent and performance additive in tires, hoses, belts, extruded profiles, and molded goods. It also provides compounds of carbon black and rubber primarily for tire applications; and cesium formate, a drilling and completion fluid for use in high pressure and high temperature oil and gas well construction. In addition, the company offers specialty grades of carbon black used in inks, coatings, plastics, adhesives, toners, batteries, and displays applications; masterbatch and conductive compound products for use in automotive, industrial, packaging, consumer products, and electronics industries; inkjet colorants used in the inkjet printing applications; and fumed silica, fumed alumina, and dispersions for automotive, construction, microelectronics, batteries, and consumer products industries, as well as aerogel, a hydrophobic, silica-based particle for use in various thermal insulation and specialty chemical applications. Further, it provides activated carbon products used for the purification of water, air, food and beverages, pharmaceuticals, and other liquids and gases; as a chemical carrier; and as a colorant or a decolorizing agent. The company sells its products primarily through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.

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.

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