Financial Survey: Hawkins (HWKN) versus Its Peers

Hawkins (NASDAQ: HWKN) is one of 28 public companies in the “Chemicals & allied products” industry, but how does it weigh in compared to its rivals? We will compare Hawkins to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares Hawkins and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawkins 5.25% 12.42% 7.22%
Hawkins Competitors -25.12% 15.64% 4.33%

Volatility and Risk

Hawkins has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Hawkins’ rivals have a beta of 1.86, suggesting that their average stock price is 86% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Hawkins and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawkins 0 0 1 0 3.00
Hawkins Competitors 308 963 1139 55 2.38

Hawkins presently has a consensus price target of $44.00, indicating a potential upside of 13.20%. As a group, “Chemicals & allied products” companies have a potential upside of 23.29%. Given Hawkins’ rivals higher possible upside, analysts clearly believe Hawkins has less favorable growth aspects than its rivals.

Dividends

Hawkins pays an annual dividend of $0.93 per share and has a dividend yield of 2.4%. Hawkins pays out 35.0% of its earnings in the form of a dividend. As a group, “Chemicals & allied products” companies pay a dividend yield of 2.5% and pay out 32.0% of their earnings in the form of a dividend. Hawkins has increased its dividend for 15 consecutive years. Hawkins lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

60.3% of Hawkins shares are held by institutional investors. Comparatively, 72.2% of shares of all “Chemicals & allied products” companies are held by institutional investors. 4.3% of Hawkins shares are held by insiders. Comparatively, 9.9% of shares of all “Chemicals & allied products” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Hawkins and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hawkins $540.20 million $24.43 million 14.61
Hawkins Competitors $6.92 billion $597.46 million 12.37

Hawkins’ rivals have higher revenue and earnings than Hawkins. Hawkins is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Hawkins rivals beat Hawkins on 10 of the 15 factors compared.

Hawkins Company Profile

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

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