Analyzing Asahi Glass (OTCMKTS:ASGLY) & HEXPOL AB (publ) (OTCMKTS:HXPLF)

Asahi Glass (OTCMKTS:ASGLY) and HEXPOL AB (publ) (OTCMKTS:HXPLF) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider and Institutional Ownership

40.0% of HEXPOL AB (publ) shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Asahi Glass pays an annual dividend of $0.16 per share and has a dividend yield of 2.3%. HEXPOL AB (publ) pays an annual dividend of $9.00 per share and has a dividend yield of 100.2%. Asahi Glass pays out 29.1% of its earnings in the form of a dividend. HEXPOL AB (publ) pays out 29.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Asahi Glass and HEXPOL AB (publ), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asahi Glass	0	1	0	0	2.00
HEXPOL AB (publ)	0	0	0	0	0.00

Profitability

This table compares Asahi Glass and HEXPOL AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asahi Glass	4.22%	5.26%	3.03%
HEXPOL AB (publ)	N/A	N/A	N/A

Valuation and Earnings

This table compares Asahi Glass and HEXPOL AB (publ)”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asahi Glass	$13.77 billion	0.56	$463.39 million	$0.55	12.93
HEXPOL AB (publ)	N/A	N/A	N/A	$30.62	0.29

Asahi Glass has higher revenue and earnings than HEXPOL AB (publ). HEXPOL AB (publ) is trading at a lower price-to-earnings ratio than Asahi Glass, indicating that it is currently the more affordable of the two stocks.

Summary

Asahi Glass beats HEXPOL AB (publ) on 7 of the 10 factors compared between the two stocks.

About Asahi Glass

AGC Inc. manufactures and sells glass, automotive, electronics, chemicals, and ceramics worldwide. The company offers architectural glass products, including laminated, insulating, wired, solar control, toughened, decorative, sound insulation, float and patterned, and industrial glasses; structural glazing systems; and automotive glass, such as laminated, tempered, and privacy glasses, as well as integrated glass antennas and module assembly windows. It also provides glass substrates for thin-film-transistor liquid crystal displays and OLEDs; synthetic fused silica glass, synthetic quartz crystals, silicon carbides, CMP slurry, through glass Vias, high refractive index glass, diffusers, glass ceramics substrates, optical planar devices, IR cut filters, aspherical glass and molded lens, and micro lens array products; polycarbonate and optical sheets, thin sheets, and films; and glass frits and pastes, as well as glass substrates for semiconductor packaging and other electronic materials. In addition, the company offers cover glass for smartphones and tablet devices; glass substrates for photovoltaic devices and touch panels; specialty glass; extra clear float glass; transparent conductive oxide glass for a-Si type solar module; and ultra-thin glass for electronics devices. Further, it provides chlor-alkali, polyurethanes, fluoro, and specialty chemical products; high thermal insulation ceramics wall for furnaces; and ceramic beads, sputtering targets, abrasion resistant ceramics, alumina cement, engineering fine ceramics, and ceramics molding agents for 3D printers. Additionally, the company engages in the digital signage on glass, copper clad laminate, and plastic optical fiber businesses; and gas and solvents, and life Science businesses. The company was formerly known as Asahi Glass Co., Ltd. and changed its name to AGC Inc. in July 2018. AGC Inc. was founded in 1907 and is headquartered in Tokyo, Japan.

About HEXPOL AB (publ)

HEXPOL AB (publ) engages in development, manufacture, and sale of various polymer compounds and engineered products in Sweden, Europe, the Americas, and Asia. It operates through two segments, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Compounding segment develops and manufactures rubber compounds under the HEXFLAME, HEXLIGHT, GloMold, and other brands; thermoplastic elastomer compounds under the Dryflex, Mediprene, Epseal, and other brand names; and thermoplastic compounds under the RheTech brand. The HEXPOL Engineered Products segment manufactures gaskets for plate heat exchangers and seals under the GISLAVED GUMMI brand; and polyurethane wheels for forklifts under the STELLANA brand. It serves for automotive and transportation, building and construction, consumer and healthcare, energy, wire and cable, industrial, oil and gas, rollers, gaskets, and seals and wheels markets. The company was founded in 1893 and is headquartered in Malmö, Sweden.