Analyzing Hexagon (HXGBY) and Its Competitors

Hexagon (OTCMKTS:HXGBY) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its competitors? We will compare Hexagon to similar businesses based on the strength of its dividends, profitability, analyst recommendations, earnings, institutional ownership, valuation and risk.

Risk & Volatility

Hexagon has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Hexagon’s competitors have a beta of -0.21, indicating that their average stock price is 121% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Hexagon and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hexagon	1	3	1	0	2.00
Hexagon Competitors	1959	7365	10078	607	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 12.71%. Given Hexagon’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Hexagon has less favorable growth aspects than its competitors.

Dividends

Hexagon pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Hexagon pays out 33.3% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.7% and pay out 67.1% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Hexagon and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hexagon	$6.14 billion	$698.53 million	42.04
Hexagon Competitors	$116.29 billion	$184.93 million	26.79

Hexagon’s competitors have higher revenue, but lower earnings than Hexagon. Hexagon is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

43.6% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Hexagon and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hexagon	11.66%	9.00%	5.59%
Hexagon Competitors	-243.46%	-147.01%	-6.77%

Summary

Hexagon competitors beat Hexagon on 8 of the 15 factors compared.

About Hexagon

Hexagon AB (publ) provides geospatial and industrial enterprise solutions worldwide. The company offers analysis and management, machine control, embedded electronics, monitoring, and planning and optimization solutions to agriculture division; 3D design and visualization, enterprise asset and asset lifecycle management, OT/ICS cyber security, engineering and schematics, enterprise project performance, operation and maintenance, procurement, fabrication, and construction services for asset lifecycle intelligence division; GNSS and SMART antennas, anti-jam systems, autonomy kits and services, correction services, GNSS/INS receivers and post processing, resilience and integrity technology, and visualization software for autonomy and positioning division; and 3D surveillance, AEC and survey software, geospatial content, machine control, digital realities platform, laser scanning and measurement tools, levels, total stations, airborne, monitoring, document and verification solutions, detection, GNSS, and mobile mapping system to geosystem division. It also provides CAD CAM and CAE software, CNC simulation and computed tomography software, measurement and inspection hardware and software, manufacturing project management, digital transformation for manufacturing, environmental health and safety, and quality management systems to manufacturing intelligence division; and HxGN mine protect, operate, monitoring, measure, and plan services, as well as HxGN autonomous and underground mining services to mining division. In addition, the company offers GIS, imagery analysis and data management, collaboration, government, transportation, and defense solutions; and utility GIS and outage management services, and public safety and geospatial platform to safety, infrastructure, and geospatial division. The company was incorporated in 1975 and is based in Stockholm, Sweden.