Contrasting HB Fuller (FUL) and CSW Industrials (CSWI)

HB Fuller (NYSE: FUL) and CSW Industrials (NASDAQ:CSWI) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

93.8% of HB Fuller shares are held by institutional investors. Comparatively, 68.8% of CSW Industrials shares are held by institutional investors. 3.5% of HB Fuller shares are held by insiders. Comparatively, 2.1% of CSW Industrials shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.



Valuation and Earnings

This table compares HB Fuller and CSW Industrials’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HB Fuller $2.31 billion 1.09 $58.24 million $2.50 19.87
CSW Industrials $327.08 million 2.19 $11.07 million $1.68 26.73

HB Fuller has higher revenue and earnings than CSW Industrials. HB Fuller is trading at a lower price-to-earnings ratio than CSW Industrials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares HB Fuller and CSW Industrials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HB Fuller 3.62% 11.69% 3.70%
CSW Industrials -4.49% 11.16% 7.96%

Volatility & Risk

HB Fuller has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, CSW Industrials has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for HB Fuller and CSW Industrials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HB Fuller 0 3 4 0 2.57
CSW Industrials 0 1 2 0 2.67

HB Fuller currently has a consensus price target of $60.40, indicating a potential upside of 21.60%. CSW Industrials has a consensus price target of $60.00, indicating a potential upside of 33.63%. Given CSW Industrials’ stronger consensus rating and higher possible upside, analysts plainly believe CSW Industrials is more favorable than HB Fuller.

Dividends

HB Fuller pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. CSW Industrials does not pay a dividend. HB Fuller pays out 24.0% of its earnings in the form of a dividend. HB Fuller has raised its dividend for 48 consecutive years.

Summary

HB Fuller beats CSW Industrials on 11 of the 17 factors compared between the two stocks.

HB Fuller Company Profile

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, and other specialty chemical products worldwide. The company operates through six segments: Americas Adhesives; EIMEA (Europe, India, Middle East and Africa); Asia Pacific; Construction Products; Engineering Adhesives; and Royal Adhesives. It offers a range of specialty adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products, as well as sealants, coatings, polymers, tapes, encapsulants, and additives for use in a range of commercial, industrial, and institutional applications; and caulks and sealants for the consumer market and professional trade. The company also provides industrial adhesives products for applications in various markets, including assembly, packaging, converting, nonwoven and hygiene, performance wood, flooring, textile, flexible packaging, graphic arts, envelope, transportation, electronics, medical, clean energy, appliance, heavy machinery, audio equipment, automotive, and structural markets. In addition, it offers adhesives, grouts, mortars, sealers, and levelers for tile setting; and duct sealants, weather barriers and fungicidal coatings, and block fillers for heating, ventilation, air conditioning, and insulation applications. It serves manufacturers of food and beverages, hygiene products, clothing, appliances, electronics, automobiles, aerospace and defense, solar energy systems, filters, construction materials, wood flooring, furniture, cabinetry, windows, doors, tissue and towel, corrugation, tube winding, packaging, labels, and tapes. The company sells its products through direct sales force, distributors, wholesalers, and retailers. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.

CSW Industrials Company Profile

CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. The company operates through three segments: Industrial Products; Coatings, Sealants and Adhesives; and Specialty Chemicals. The Industrial Products segment offers specialty mechanical products; fire and smoke protection products; architecturally-specified building products; and storage, filtration, and application equipment for use with specialty chemicals and other products. The Coatings, Sealants and Adhesives segment provides coatings and penetrants, pipe thread sealants, firestopping sealants and caulks, and adhesives/solvent cements. The Specialty Chemicals segment offers lubricants and greases, drilling compounds, anti-seize compounds, chemical formulations, and degreasers and cleaners. The company serves heating, ventilation, and air conditioning; and plumbing, refrigeration, electrical, commercial construction, rail car and locomotive, oil and gas, energy, drilling and boring, water well drilling, mining, steel, power generation, cement, aviation, and general industrial markets. CSW Industrials, Inc. sells its products primarily under the RectorSeal No. 5, KOPR KOTE, Jet-Lube Extreme, Smoke Guard, Safe-T-Switch, Mighty Bracket, Balco, Whitmore, Strathmore, American Coatings, Air Sentry, Oil Safe, Deacon, AC Leak Freeze, and KATS Coatings brand names. The company was incorporated in 2014 and is based in Dallas, Texas.

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