Contrasting Hexagon Composites ASA (OTCMKTS:HXGCF) and Sonoco Products (NYSE:SON)

Hexagon Composites ASA (OTCMKTS:HXGCFGet Free Report) and Sonoco Products (NYSE:SONGet Free Report) are both consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Hexagon Composites ASA and Sonoco Products’ 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
Sonoco Products 7.00% 22.42% 7.28%

Earnings and Valuation

This table compares Hexagon Composites ASA and Sonoco Products’ top-line 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 1.96
Sonoco Products $6.78 billion 0.82 $474.96 million $4.80 11.81

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Hexagon Composites ASA and Sonoco Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hexagon Composites ASA 0 1 0 0 2.00
Sonoco Products 0 2 2 0 2.50

Sonoco Products has a consensus target price of $61.50, suggesting a potential upside of 8.48%. Given Sonoco Products’ stronger consensus rating and higher possible upside, analysts clearly believe Sonoco Products is more favorable than Hexagon Composites ASA.

Insider & Institutional Ownership

16.8% of Hexagon Composites ASA shares are owned by institutional investors. Comparatively, 76.2% of Sonoco Products shares are owned by institutional investors. 0.5% of Sonoco Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Hexagon Composites ASA pays an annual dividend of $0.25 per share and has a dividend yield of 12.9%. Sonoco Products pays an annual dividend of $2.04 per share and has a dividend yield of 3.6%. Hexagon Composites ASA pays out 25.3% of its earnings in the form of a dividend. Sonoco Products pays out 42.5% 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. Sonoco Products has increased its dividend for 42 consecutive years. Hexagon Composites ASA is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Sonoco Products beats Hexagon Composites ASA on 12 of the 14 factors compared between the two stocks.

About Hexagon Composites ASA

(Get Free Report)

Hexagon Composites ASA, together with its subsidiaries, engages in the production and sale of composite pressure cylinders and fuel systems in Norway, Europe, North America, South-East Asia, the Middle East, and internationally. The company operates through four segments: Hexagon Agility, Hexagon Ragasco, Hexagon Digital Wave, and Hexagon Purus. The Hexagon Agility segment provides clean fuel solutions for commercial vehicles, passenger vehicles, and gaseous energy transportation. 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 down-time and inspection costs while improving inspection accuracy. Hexagon Purus segment provides high pressure cylinders, vehicle systems, and battery backs for fuel cell and battery electric vehicles that enable the safe and effective use of hydrogen and electricity as transportation fuel in various applications, including buses, distribution, refueling, rail, maritime, aerospace, and ground storage, as well as light, medium, and heavy-duty vehicles. Hexagon Composites ASA was incorporated in 1995 and is headquartered in Ă…lesund, Norway.

About Sonoco Products

(Get Free Report)

Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates through two segments: Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products. The Industrial Paper Packaging segment provides paperboard tubes, cones, and cores; paper-based protective packaging products; and uncoated recycled paperboard products. Sonoco Products Company also offers various packaging materials, including plastic, paper, foam, and other specialty materials. The company sells its products in various markets, which include paper, textile, film, food, packaging, construction, and wire and cable. Sonoco Products Company was founded in 1899 and is headquartered in Hartsville, South Carolina.

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