Head to Head Contrast: Huabao International (OTCMKTS:HUIHY) and PPG Industries (NYSE:PPG)

PPG Industries (NYSE:PPG) and Huabao International (OTCMKTS:HUIHY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations and price targets for PPG Industries and Huabao International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPG Industries	0	11	7	1	2.47
Huabao International	0	0	0	0	0.00

PPG Industries presently has a consensus target price of $124.79, suggesting a potential downside of 2.69%. Given PPG Industries’ stronger consensus rating and higher probable upside, equities research analysts clearly believe PPG Industries is more favorable than Huabao International.

Earnings & Valuation

This table compares PPG Industries and Huabao International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPG Industries	$15.88 billion	1.81	$1.58 billion	$6.94	18.48
Huabao International	$469.25 million	3.44	-$53.62 million	N/A	N/A

PPG Industries has higher revenue and earnings than Huabao International.

Profitability

This table compares PPG Industries and Huabao International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PPG Industries	9.93%	22.67%	7.90%
Huabao International	N/A	N/A	N/A

Volatility and Risk

PPG Industries has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Huabao International has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Dividends

PPG Industries pays an annual dividend of $2.84 per share and has a dividend yield of 2.2%. Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. PPG Industries pays out 40.9% of its earnings in the form of a dividend. PPG Industries has raised its dividend for 54 consecutive years. PPG Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

81.9% of PPG Industries shares are owned by institutional investors. 0.3% of PPG Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

PPG Industries beats Huabao International on 14 of the 16 factors compared between the two stocks.

About PPG Industries

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. The Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic and aluminum tubes for food, beverage and personal care, promotional, and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. PPG Industries, Inc. was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.

About Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.