Analyzing FUCHS (OTCMKTS:FUPBY) and Flexible Solutions International (NYSE:FSI)

Flexible Solutions International (NYSE:FSI) and FUCHS (OTCMKTS:FUPBY) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Flexible Solutions International and FUCHS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flexible Solutions International	0	1	0	1	3.00
FUCHS	0	2	2	1	2.80

Valuation and Earnings

This table compares Flexible Solutions International and FUCHS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flexible Solutions International	$35.58 million	2.17	$2.78 million	($0.24)	-25.21
FUCHS	$4.03 billion	1.56	$346.21 million	$0.75	15.95

FUCHS has higher revenue and earnings than Flexible Solutions International. Flexible Solutions International is trading at a lower price-to-earnings ratio than FUCHS, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

54.3% of Flexible Solutions International shares are held by institutional investors. 35.8% of Flexible Solutions International shares are held 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.

Volatility & Risk

Flexible Solutions International has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, FUCHS has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Profitability

This table compares Flexible Solutions International and FUCHS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flexible Solutions International	10.80%	10.61%	7.32%
FUCHS	9.04%	17.40%	12.30%

Dividends

Flexible Solutions International pays an annual dividend of $0.15 per share and has a dividend yield of 2.5%. FUCHS pays an annual dividend of $0.19 per share and has a dividend yield of 1.6%. Flexible Solutions International pays out -62.5% of its earnings in the form of a dividend. FUCHS pays out 25.3% 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. Flexible Solutions International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Flexible Solutions International beats FUCHS on 9 of the 15 factors compared between the two stocks.

About Flexible Solutions International

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; TPAs for cleaning products to prevents the re-deposition of dirt onto the surfaces; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. The company was incorporated in 1991 and is headquartered in Taber, Canada.

About FUCHS

Fuchs SE develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, dry coatings, gear and hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, compressor and refrigeration oils, release agents, slideways oils, fluids and industrial oils, textile machine oils, and turbine oils. In addition, the company offers lubricating greases comprising assembly pastes, biodegradable greases, food grade greases, multi-purpose/long-life greases, pastes for extreme temperatures, perfluorinated pastes, and wheel bearing greases, as well as gear boxes, and greases for central lubricating system, extreme temperature, machine tools, plain and roller bearings, rail vehicles, spray cans or rattle cans, and solid lubricants. Further, it provides metal processing lubricants consisting of cleaners, corrosion preventives, cutting and grinding, forming lubricants, and quenching oils; and special application lubricants for application equipment, chain lubrication, dry coatings, food and beverage, gears, sugar processing, railway traffic, plain and roller bearings, glass manufacturing process, hot forming, maintenance, open gears, pastes, release agents, other specialties, special greases, and wind power plants. Additionally, the company offers open gear and surface coating services. The company was formerly known as Fuchs Petrolub SE and changed its name to Fuchs SE in July 2023. Fuchs SE was founded in 1931 and is headquartered in Mannheim, Germany.