Rogers (NYSE: ROG) and Hexcel (NYSE:HXL) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Hexcel pays an annual dividend of $0.50 per share and has a dividend yield of 0.8%. Rogers does not pay a dividend. Hexcel pays out 18.7% of its earnings in the form of a dividend. Hexcel has increased its dividend for 2 consecutive years.
This table compares Rogers and Hexcel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
96.6% of Rogers shares are held by institutional investors. Comparatively, 95.7% of Hexcel shares are held by institutional investors. 1.0% of Rogers shares are held by insiders. Comparatively, 1.3% of Hexcel shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Rogers and Hexcel’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rogers||$821.04 million||2.75||$80.45 million||$5.76||21.38|
|Hexcel||$1.97 billion||2.99||$284.00 million||$2.68||24.53|
Hexcel has higher revenue and earnings than Rogers. Rogers is trading at a lower price-to-earnings ratio than Hexcel, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Rogers has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Hexcel has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Rogers and Hexcel, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rogers presently has a consensus target price of $160.00, suggesting a potential upside of 29.91%. Hexcel has a consensus target price of $66.00, suggesting a potential upside of 0.40%. Given Rogers’ stronger consensus rating and higher possible upside, analysts clearly believe Rogers is more favorable than Hexcel.
Hexcel beats Rogers on 10 of the 17 factors compared between the two stocks.
Rogers Corporation designs, develops, manufactures, and sells engineered materials and components worldwide. The company's Advanced Connectivity Solutions segment offers circuit materials and solutions for connectivity applications in wireless communications infrastructure, automotive, connected devices, wired infrastructure, consumer electronics, and aerospace/defense. Its Elastomeric Material Solutions segment provides elastomeric material solutions for critical cushioning, sealing, impact protection, and vibration management applications, including general industrial, portable electronics, consumer goods, automotive, mass transportation, construction, and printing applications. The company's Power Electronics Solutions segment offers ceramic substrate materials for power module applications, laminated bus bars for power inverter and high power interconnect applications, and micro-channel coolers. Its Other segment provides elastomeric components for applications in ground transportation, office equipment, consumer, and other markets; elastomer floats for level sensing in fuel tanks, motors, and storage tanks; and inverters for portable communications and automotive markets. The company also manufactures and sells polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes, and specialty products for the industrial, aerospace, automotive, and electronics markets. Rogers Corporation was founded in 1832 and is headquartered in Chandler, Arizona.
Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. The company operates in two segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycombs, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blade, recreational product, and other industrial applications, as well as in cars, boats, and trains. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, helicopter blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components for use in helicopter blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings. The company sells products directly through its sales personnel, as well as through independent distributors and manufacturer representatives in the Americas, Europe, the Asia Pacific, Russia, and Africa. Hexcel Corporation has a strategic alliance with Arkema to develop thermoplastic composite solutions. The company was founded in 1946 and is headquartered in Stamford, Connecticut.
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