Contrasting Orbia Advance (OTCMKTS:MXCHY) & Hawkins (NASDAQ:HWKN)

Hawkins (NASDAQ:HWKN) and Orbia Advance (OTCMKTS:MXCHY) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Dividends

Hawkins pays an annual dividend of $0.76 per share and has a dividend yield of 0.4%. Orbia Advance pays an annual dividend of $0.06 per share and has a dividend yield of 3.4%. Hawkins pays out 18.7% of its earnings in the form of a dividend. Hawkins has raised its dividend for 20 consecutive years.

Institutional & Insider Ownership

69.7% of Hawkins shares are held by institutional investors. 4.1% of Hawkins shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Hawkins and Orbia Advance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hawkins	$974.43 million	3.67	$84.35 million	$4.06	42.21
Orbia Advance	$7.51 billion	0.23	$145.00 million	N/A	N/A

Orbia Advance has higher revenue and earnings than Hawkins.

Analyst Recommendations

This is a breakdown of recent ratings for Hawkins and Orbia Advance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hawkins	0	1	2	1	3.00
Orbia Advance	0	0	1	0	3.00

Hawkins currently has a consensus target price of $162.50, indicating a potential downside of 5.18%. Given Hawkins’ higher probable upside, analysts clearly believe Hawkins is more favorable than Orbia Advance.

Profitability

This table compares Hawkins and Orbia Advance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hawkins	8.37%	18.35%	10.73%
Orbia Advance	2.21%	7.87%	2.14%

Volatility & Risk

Hawkins has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Orbia Advance has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Summary

Hawkins beats Orbia Advance on 11 of the 15 factors compared between the two stocks.

About Hawkins

Hawkins, Inc. operates as a specialty chemical and ingredients company in the United States. It operates through three segments: Industrial, Water Treatment, and Health and Nutrition. The Industrial segment offers industrial chemicals, products, and services to agriculture, chemical processing, electronics, energy, food, pharmaceutical, and plating industries. This segment manufactures sodium hypochlorite and agricultural products, as well as various food-grade and pharmaceutical products, such as liquid phosphates, lactates, other blended products, and agricultural products; and receives, stores, and distributes various chemicals comprising liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia, and potassium hydroxide. It also repackages water treatment chemicals and bulk industrial chemicals; and performs custom blending of chemicals. The Water Treatment segment provides chemicals, products, equipment, services, and solutions for potable water, municipal and industrial wastewater, industrial process water, non-residential swimming pool water, and agriculture water. The Health and Nutrition segment offers 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, vitamins and amino acids, excipients, joint products, botanicals and herbs, sweeteners, and enzymes. Hawkins, Inc. was founded in 1938 and is headquartered in Roseville, Minnesota.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.