H. B. Fuller (NYSE:FUL) and Huabao International (OTCMKTS:HUIHY) Head to Head Survey

Huabao International (OTCMKTS:HUIHY) and H. B. Fuller (NYSE:FUL) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Dividends

Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.4%. H. B. Fuller pays an annual dividend of $0.94 per share and has a dividend yield of 1.6%. H. B. Fuller pays out 45.0% of its earnings in the form of a dividend. H. B. Fuller has raised its dividend for 57 consecutive years. H. B. Fuller is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Huabao International has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, H. B. Fuller has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Huabao International and H. B. Fuller, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huabao International	0	0	0	0	0.00
H. B. Fuller	1	2	2	2	2.71

H. B. Fuller has a consensus target price of $65.75, indicating a potential upside of 10.84%. Given H. B. Fuller’s stronger consensus rating and higher possible upside, analysts clearly believe H. B. Fuller is more favorable than Huabao International.

Earnings & Valuation

This table compares Huabao International and H. B. Fuller”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huabao International	$469.25 million	1.92	-$53.62 million	N/A	N/A
H. B. Fuller	$3.57 billion	0.90	$130.26 million	$2.09	28.38

H. B. Fuller has higher revenue and earnings than Huabao International.

Profitability

This table compares Huabao International and H. B. Fuller’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huabao International	N/A	N/A	N/A
H. B. Fuller	3.28%	11.49%	4.24%

Institutional & Insider Ownership

95.9% of H. B. Fuller shares are owned by institutional investors. 2.0% of H. B. Fuller shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

H. B. Fuller beats Huabao International on 14 of the 16 factors compared between the two stocks.

About Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.