Hydrogenics (NASDAQ: HYGS) and Valhi (NYSE:VHI) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Earnings & Valuation
This table compares Hydrogenics and Valhi’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hydrogenics||$48.05 million||2.55||-$11.14 million||($0.80)||-9.94|
|Valhi||$1.88 billion||1.26||$207.50 million||N/A||N/A|
Insider and Institutional Ownership
24.2% of Hydrogenics shares are owned by institutional investors. Comparatively, 2.8% of Valhi shares are owned by institutional investors. 26.1% of Hydrogenics shares are owned by insiders. Comparatively, 0.0% of Valhi shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Hydrogenics and Valhi’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Hydrogenics and Valhi, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hydrogenics presently has a consensus target price of $10.00, indicating a potential upside of 25.79%. Valhi has a consensus target price of $5.00, indicating a potential downside of 28.26%. Given Hydrogenics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Hydrogenics is more favorable than Valhi.
Valhi pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. Hydrogenics does not pay a dividend.
Risk & Volatility
Hydrogenics has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Valhi has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500.
Valhi beats Hydrogenics on 8 of the 14 factors compared between the two stocks.
Hydrogenics Corporation, together with its subsidiaries, designs, develops, and manufactures hydrogen generation products based on water electrolysis technology; and fuel cell products based on proton exchange membrane technology. It operates in two segments, OnSite Generation and Power Systems. The OnSite Generation segment develops products for industrial gas, hydrogen fueling, and renewable energy storage markets. It offers HySTAT Hydrogen Stations that supply on-site hydrogen for various hydrogen applications, including vehicle fueling, distributed power, and various industrial processes; and provides spare parts and services. This segment sells its products to original equipment manufacturers (OEMs), merchant gas companies, end users, and oil and gas companies, as well as to electric power utilities. The Power Systems segment develops products for energy storage, stationary, and motive power applications. This segment offers HyPM fuel cell products comprising HyPM fuel cell power modules that produce direct current (DC) power in standard outputs of 2.5, 5, 8, 12, 16, 30, 90, 120, and 200 kW; and HyPX Fuel Cell Power Pack, which includes a standard HyPM power module integrated with hydrogen storage tanks and ultracapacitors to provide higher power in short bursts. Its HyPM fuel cell products also consist of integrated fuel cell systems that are used for portable and stationary applications, including portable and auxiliary power units for military applications, and DC or DC backup power system for cellular tower sites, as well as provides engineering development services for new or custom products. This segment sells its products primarily to OEMs and other integrators, as well as to military, aerospace, and other early adopters of emerging technologies. The company markets its products through direct sales force and a network of distributors worldwide. Hydrogenics Corporation was founded in 1988 and is headquartered in Mississauga, Canada.
Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses worldwide. The company's Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the Kronos name through agents and distributors. This segment also offers iron-based chemicals, titanium oxychlorides, and titanyl sulfates. The company's Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and gaming machines, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. This segment also provides stainless steel exhaust components, gauges, throttle controls, trim tabs, hardware, and accessories primarily for performance and ski/wakeboard boats. The company's Real Estate Management and Development segment provides utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. Valhi, Inc. also offers insurance brokerage and risk management services; and holds marketable securities and other investments. The company was founded in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Contran Corporation.
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