Contrasting Hexagon Composites ASA (OTCMKTS:HXGCF) and International Paper (NYSE:IP)

Hexagon Composites ASA (OTCMKTS:HXGCF) and International Paper (NYSE:IP) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Hexagon Composites ASA and International Paper’s 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
International Paper	-14.20%	-1.09%	-0.44%

Dividends

Hexagon Composites ASA pays an annual dividend of $0.25 per share and has a dividend yield of 16.2%. International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 4.5%. Hexagon Composites ASA pays out 25.3% of its earnings in the form of a dividend. International Paper pays out -28.4% 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.

Earnings and Valuation

This table compares Hexagon Composites ASA and International Paper”s top-line revenue, earnings per share (EPS) 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	1.56
International Paper	$23.63 billion	0.91	-$3.52 billion	($6.52)	-6.25

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

Insider & Institutional Ownership

16.8% of Hexagon Composites ASA shares are held by institutional investors. Comparatively, 82.0% of International Paper shares are held by institutional investors. 0.2% of International Paper shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hexagon Composites ASA and International Paper, 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
International Paper	1	4	9	0	2.57

International Paper has a consensus price target of $48.75, indicating a potential upside of 19.69%. Given International Paper’s higher probable upside, analysts clearly believe International Paper is more favorable than Hexagon Composites ASA.

Summary

Hexagon Composites ASA beats International Paper on 7 of the 13 factors compared between the two stocks.

About Hexagon Composites ASA

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.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.