Head to Head Analysis: Norsk Hydro ASA (NHYDY) and The Competition

Norsk Hydro ASA (OTCMKTS:NHYDY) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Norsk Hydro ASA to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, valuation, risk, dividends and earnings.

Institutional and Insider Ownership

0.0% of Norsk Hydro ASA shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.0% of Norsk Hydro ASA shares are owned by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Norsk Hydro ASA pays an annual dividend of $0.23 per share and has a dividend yield of 3.2%. Norsk Hydro ASA pays out 32.9% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.3% and pay out 10.8% of their earnings in the form of a dividend. Norsk Hydro ASA lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Norsk Hydro ASA and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norsk Hydro ASA	6.41%	13.82%	7.28%
Norsk Hydro ASA Competitors	-1,161,736,352,322,426,600.00%	-52.89%	-2.06%

Earnings & Valuation

This table compares Norsk Hydro ASA and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Norsk Hydro ASA	$20.05 billion	$647.52 million	10.33
Norsk Hydro ASA Competitors	$4.65 billion	$278.26 million	-26.27

Norsk Hydro ASA has higher revenue and earnings than its peers. Norsk Hydro ASA is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Norsk Hydro ASA and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norsk Hydro ASA	2	6	2	1	2.18
Norsk Hydro ASA Competitors	6421	22622	32341	1800	2.47

As a group, “Metals & Mining” companies have a potential upside of 28.38%. Given Norsk Hydro ASA’s peers stronger consensus rating and higher possible upside, analysts clearly believe Norsk Hydro ASA has less favorable growth aspects than its peers.

Risk and Volatility

Norsk Hydro ASA has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Norsk Hydro ASA’s peers have a beta of 0.96, meaning that their average stock price is 4% less volatile than the S&P 500.

Summary

Norsk Hydro ASA beats its peers on 8 of the 15 factors compared.

About Norsk Hydro ASA

Norsk Hydro ASA is a Norwegian industrial company focused on aluminum and renewable energy. Its operations span much of the aluminum value chain, from bauxite mining and alumina refining to primary aluminum production, metal recycling, and the manufacture of aluminum products. The company supplies aluminum for applications in industries such as transportation, construction, packaging, and manufacturing. Its product activities include rolled and extruded aluminum, while its energy operations generate and supply renewable power that supports its industrial businesses and external customers.