Critical Analysis: Hexagon Composites ASA (HXGCF) vs. Its Peers

Hexagon Composites ASA (OTCMKTS:HXGCF) is one of 70 publicly-traded companies in the “Containers & Packaging” industry, but how does it weigh in compared to its peers? We will compare Hexagon Composites ASA to related companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, dividends and risk.

Profitability

This table compares Hexagon Composites ASA and its peers’ 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
Hexagon Composites ASA Competitors	-28.74%	-31.79%	2.15%

Analyst Ratings

This is a summary of current ratings for Hexagon Composites ASA and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hexagon Composites ASA	0	0	1	0	3.00
Hexagon Composites ASA Competitors	383	2322	3372	84	2.51

As a group, “Containers & Packaging” companies have a potential upside of 29.61%. Given Hexagon Composites ASA’s peers higher probable upside, analysts clearly believe Hexagon Composites ASA has less favorable growth aspects than its peers.

Dividends

Hexagon Composites ASA pays an annual dividend of $0.25 per share and has a dividend yield of 16.2%. Hexagon Composites ASA pays out 25.3% of its earnings in the form of a dividend. As a group, “Containers & Packaging” companies pay a dividend yield of 5.1% and pay out -106.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Hexagon Composites ASA and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hexagon Composites ASA	N/A	N/A	1.56
Hexagon Composites ASA Competitors	$8.00 billion	$208.36 million	14.38

Hexagon Composites ASA’s peers have higher revenue and earnings than Hexagon Composites ASA. Hexagon Composites ASA is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

16.8% of Hexagon Composites ASA shares are owned by institutional investors. Comparatively, 54.4% of shares of all “Containers & Packaging” companies are owned by institutional investors. 13.5% of shares of all “Containers & Packaging” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Hexagon Composites ASA peers beat Hexagon Composites ASA on 8 of the 13 factors compared.

Hexagon Composites ASA Company Profile

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.