Hawkins (NASDAQ: HWKN) and Balchem (NASDAQ:BCPC) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
This table compares Hawkins and Balchem’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hawkins pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Balchem pays an annual dividend of $0.42 per share and has a dividend yield of 0.4%.
Valuation & Earnings
This table compares Hawkins and Balchem’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hawkins||$483.59 million||0.71||$22.55 million||N/A||N/A|
|Balchem||$594.79 million||5.09||$90.07 million||N/A||N/A|
Balchem has higher revenue and earnings than Hawkins.
Volatility & Risk
Hawkins has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Balchem has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
Insider & Institutional Ownership
56.8% of Hawkins shares are held by institutional investors. Comparatively, 87.7% of Balchem shares are held by institutional investors. 3.7% of Hawkins shares are held by company insiders. Comparatively, 1.0% of Balchem shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for Hawkins and Balchem, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Balchem has a consensus price target of $85.00, suggesting a potential downside of 9.78%. Given Balchem’s higher possible upside, analysts clearly believe Balchem is more favorable than Hawkins.
Balchem beats Hawkins on 10 of the 12 factors compared between the two stocks.
Hawkins Company Profile
Hawkins, Inc. blends, manufactures, and distributes chemicals and specialty ingredients primarily in the United States. It operates in three segments: Industrial, Water Treatment, and Health and Nutrition. The Industrial segment provides industrial chemicals, products, and services primarily to the agriculture, chemical processing, electronics, energy, food, pharmaceutical, plating, and power generation industries. This segment primarily offers acids, alkalis, and industrial and food-grade salts. It also receives, stores, and distributes various chemicals in bulk quantities, including liquid caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide, and aqua ammonia. In addition, this segment manufactures sodium hypochlorite, and agricultural products, as well as certain food-grade products comprising liquid phosphate, lactates, and other blended products; repackages water treatment and bulk industrial chemicals; and performs custom blending of certain chemicals, and contract and private label bleach packaging. The Water Treatment segment provides 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 provides 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. Its products portfolio includes minerals, botanicals and herbs, vitamins and amino acids, excipients, joint products, sweeteners, and enzymes. Hawkins, Inc. was founded in 1938 and is headquartered in Roseville, Minnesota.
Balchem Company Profile
Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets in the United States and internationally. The company's Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include creamer and chocolate systems, dairy replacers, powdered fats, nutritional beverage bases, beverages, juice and dairy bases, ice cream bases and variegates, cereals, grain based snacks, and cereal based ingredients. This segment also offers microencapsulation solutions; and human grade choline nutrients and mineral amino acid chelated products for wellness applications. Its Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; and choline chloride, a nutrient for monogastric animal health. The company's Specialty Products segment offers ethylene oxide primarily for use in the health care industry; and single use canisters with ethylene oxide for sterilizing re-usable devices. It also sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. The company's Industrial Products segment provides choline chloride derivatives for hydraulic fracturing of shale natural gas wells; and methylamines, which are building blocks for the manufacture of choline products, as well as used in industrial applications. The company sells its products through sales force, independent distributors, and sales agents. Balchem Corporation was founded in 1967 and is headquartered in New Hampton, New York.
Receive News & Ratings for Hawkins Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hawkins and related companies with MarketBeat.com's FREE daily email newsletter.