Critical Review: Ball (NYSE:BALL) & Hexagon Composites ASA (OTCMKTS:HXGCF)

Hexagon Composites ASA (OTCMKTS:HXGCFGet Free Report) and Ball (NYSE:BALLGet Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hexagon Composites ASA and Ball, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hexagon Composites ASA 0 0 1 0 3.00
Ball 1 4 8 0 2.54

Ball has a consensus price target of $71.69, indicating a potential upside of 12.95%. Given Ball’s higher probable upside, analysts plainly believe Ball is more favorable than Hexagon Composites ASA.

Dividends

Hexagon Composites ASA pays an annual dividend of $0.25 per share and has a dividend yield of 17.0%. Ball pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Hexagon Composites ASA pays out 25.3% of its earnings in the form of a dividend. Ball pays out 22.7% 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.

Insider and Institutional Ownership

16.8% of Hexagon Composites ASA shares are owned by institutional investors. Comparatively, 86.5% of Ball shares are owned by institutional investors. 0.6% of Ball shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Hexagon Composites ASA and Ball”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hexagon Composites ASA N/A N/A N/A $0.98 1.49
Ball $13.16 billion 1.28 $912.00 million $3.53 17.98

Ball has higher revenue and earnings than Hexagon Composites ASA. Hexagon Composites ASA is trading at a lower price-to-earnings ratio than Ball, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hexagon Composites ASA and Ball’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hexagon Composites ASA N/A N/A N/A
Ball 6.61% 18.76% 5.35%

Summary

Ball beats Hexagon Composites ASA on 11 of the 13 factors compared between the two stocks.

About Hexagon Composites ASA

(Get Free Report)

Hexagon Composites ASA, together with its subsidiaries, engages in the manufacture and sale of composite pressure cylinders and fuel systems for alternative fuels worldwide. The company operates through Hexagon Agility, Hexagon Ragasco, and Hexagon Digital Wave segments. The Hexagon Agility segment provides clean fuel solutions for commercial vehicles, passenger vehicles, and gaseous energy transportation; and gas distribution solutions. The Hexagon Ragasco segment manufacturers composite liquefied petroleum gas (LPG) cylinders for leisure, household, and industrial applications. The Hexagon Digital Wave segment offers cylinder testing and monitoring technology solutions that reduce cylinder and system down-time and inspection costs while improving inspection accuracy. Hexagon Composites ASA was founded in 1985 and is headquartered in Ålesund, Norway.

About Ball

(Get Free Report)

Ball Corporation supplies aluminum packaging products for the beverage, personal care, and household products industries in the United States, Brazil, and internationally. The company manufactures and sells aluminum beverage containers to fillers of carbonated soft drinks, beer, energy drinks, and other beverages. It also manufactures and sells extruded aluminum aerosol containers, recloseable aluminum bottles, aluminum cups, and aluminum slugs. Ball Corporation was founded in 1880 and is headquartered in Westminster, Colorado.

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