Critical Contrast: Solstice Advanced Mat (NASDAQ:SOLS) versus HEXPOL AB (publ) (OTCMKTS:HXPLF)

HEXPOL AB (publ) (OTCMKTS:HXPLF) and Solstice Advanced Mat (NASDAQ:SOLS) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares HEXPOL AB (publ) and Solstice Advanced Mat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HEXPOL AB (publ)	N/A	N/A	N/A
Solstice Advanced Mat	5.13%	14.28%	4.82%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for HEXPOL AB (publ) and Solstice Advanced Mat, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HEXPOL AB (publ)	0	0	0	0	0.00
Solstice Advanced Mat	0	3	7	1	2.82

Solstice Advanced Mat has a consensus target price of $78.25, suggesting a potential upside of 28.36%. Given Solstice Advanced Mat’s stronger consensus rating and higher probable upside, analysts plainly believe Solstice Advanced Mat is more favorable than HEXPOL AB (publ).

Dividends

HEXPOL AB (publ) pays an annual dividend of $9.00 per share and has a dividend yield of 100.2%. Solstice Advanced Mat pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. HEXPOL AB (publ) pays out 29.4% of its earnings in the form of a dividend. Solstice Advanced Mat pays out 16.9% 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 HEXPOL AB (publ) and Solstice Advanced Mat”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HEXPOL AB (publ)	N/A	N/A	N/A	$30.62	0.29
Solstice Advanced Mat	$4.10 billion	2.36	$237.00 million	$1.77	34.44

Solstice Advanced Mat has higher revenue and earnings than HEXPOL AB (publ). HEXPOL AB (publ) is trading at a lower price-to-earnings ratio than Solstice Advanced Mat, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

40.0% of HEXPOL AB (publ) shares are held by institutional investors. 0.1% of Solstice Advanced Mat shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Solstice Advanced Mat beats HEXPOL AB (publ) on 11 of the 14 factors compared between the two stocks.

About HEXPOL AB (publ)

HEXPOL AB (publ) engages in development, manufacture, and sale of various polymer compounds and engineered products in Sweden, Europe, the Americas, and Asia. It operates through two segments, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Compounding segment develops and manufactures rubber compounds under the HEXFLAME, HEXLIGHT, GloMold, and other brands; thermoplastic elastomer compounds under the Dryflex, Mediprene, Epseal, and other brand names; and thermoplastic compounds under the RheTech brand. The HEXPOL Engineered Products segment manufactures gaskets for plate heat exchangers and seals under the GISLAVED GUMMI brand; and polyurethane wheels for forklifts under the STELLANA brand. It serves for automotive and transportation, building and construction, consumer and healthcare, energy, wire and cable, industrial, oil and gas, rollers, gaskets, and seals and wheels markets. The company was founded in 1893 and is headquartered in Malmö, Sweden.

About Solstice Advanced Mat

Solstice Advanced Materials is a leading global specialty materials company that advances science for smarter outcomes. Solstice offers high-performance solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging and more.