Financial Contrast: Huabao International (OTCMKTS:HUIHY) vs. PPG Industries (NYSE:PPG)

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

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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. PPG Industries pays an annual dividend of $2.84 per share and has a dividend yield of 2.2%. 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.

Volatility & Risk

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

Earnings and Valuation

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

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

PPG Industries has higher revenue and earnings than Huabao International.

Profitability

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

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

Analyst Ratings

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

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

PPG Industries has a consensus target price of $124.79, indicating a potential downside of 2.69%. Given PPG Industries’ stronger consensus rating and higher possible upside, analysts plainly believe PPG Industries is more favorable than Huabao International.

Summary

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

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.

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.