Dow Chemical (NYSE: DWDP) and Hawkins (NASDAQ:HWKN) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
This table compares Dow Chemical and Hawkins’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Dow Chemical and Hawkins, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dow Chemical currently has a consensus price target of $80.35, suggesting a potential upside of 29.51%. Given Dow Chemical’s higher probable upside, research analysts plainly believe Dow Chemical is more favorable than Hawkins.
Institutional & Insider Ownership
70.5% of Dow Chemical shares are held by institutional investors. Comparatively, 58.4% of Hawkins shares are held by institutional investors. 0.4% of Dow Chemical shares are held by insiders. Comparatively, 3.7% of Hawkins shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dow Chemical pays an annual dividend of $1.52 per share and has a dividend yield of 2.5%. Hawkins pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Dow Chemical pays out 44.7% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Dow Chemical and Hawkins’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dow Chemical||$62.48 billion||2.31||$1.46 billion||$3.40||18.25|
|Hawkins||$483.59 million||0.71||$22.55 million||N/A||N/A|
Dow Chemical has higher revenue and earnings than Hawkins.
Volatility & Risk
Dow Chemical has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Hawkins has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Dow Chemical beats Hawkins on 8 of the 14 factors compared between the two stocks.
About Dow Chemical
DowDuPont Inc., through its subsidiaries, engages in agriculture, materials science, and specialty products businesses worldwide. The company's Agriculture segment develops and sells hybrid corn seed and soybean seed varieties; canola, cotton, sunflower, sorghum, wheat, and rice seeds; silage inoculants; and weed control, disease control, and insect control products. Its Performance Materials & Coatings segment manufactures and sells architectural paints and coatings, and industrial coatings; performance monomers and silicones; and standalone silicone and acrylic-based materials. The company's Industrial Intermediates & Infrastructure segment offers cellulose ethers, redispersible latex powders, silicones, and acrylic emulsions; energy solutions; propylene oxide and propylene glycol, polyether polyols and aromatic isocyanates, and formulated polyurethane systems; and caustic soda, and ethylene dichloride and vinyl chloride monomer products. Its Packaging & Specialty Plastics segment provides ethylene, and propylene and aromatic products; and polyolefin elastomers and ethylene propylene diene monomer elastomers. The company's Electronics & Imaging segment offers materials and systems for mobile devices, television monitors, personal computers, and electronics. Its Nutrition & Biosciences segment provides specialty food ingredients, as well as cellulosic- and alginates-based pharma excipients; and enzymes, biomaterials, biocides, and antimicrobial solutions and process technology. The company's Transportation & Advanced Polymers segment offers engineering resins, adhesives, lubricants, and parts for transportation, electronics, medical, industrial, and consumer end-markets. Its Safety & Construction segment provides engineered products and integrated systems for construction, worker safety, energy, oil and gas, transportation, medical device, and water purification and separation industries. The company was founded in 1897 and is headquartered in Midland, Michigan.
Hawkins, Inc. distributes, blends and manufactures chemicals and specialty ingredients for its customers in a range of industries. The Company conducts its business in three segments: Industrial, Water Treatment, and Health and Nutrition. Its Industrial segment is engaged in providing industrial chemicals, products and services to various industries, such as agriculture, chemical processing, electronics and energy. Its Water Treatment segment is engaged in providing 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 is engaged in providing 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.
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