Reviewing H. B. Fuller (NYSE:FUL) & SIKA (OTCMKTS:SXYAY)

H. B. Fuller (NYSE:FUL) and SIKA (OTCMKTS:SXYAY) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Dividends

H. B. Fuller pays an annual dividend of $0.98 per share and has a dividend yield of 1.7%. SIKA pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. H. B. Fuller pays out 32.3% of its earnings in the form of a dividend. H. B. Fuller has increased its dividend for 57 consecutive years. H. B. Fuller is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares H. B. Fuller and SIKA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H. B. Fuller	4.62%	11.84%	4.52%
SIKA	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for H. B. Fuller and SIKA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H. B. Fuller	1	2	3	1	2.57
SIKA	1	3	2	2	2.63

H. B. Fuller currently has a consensus target price of $65.50, indicating a potential upside of 13.48%. Given H. B. Fuller’s higher possible upside, equities research analysts plainly believe H. B. Fuller is more favorable than SIKA.

Insider & Institutional Ownership

95.9% of H. B. Fuller shares are owned by institutional investors. 1.8% of H. B. Fuller shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares H. B. Fuller and SIKA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H. B. Fuller	$3.47 billion	0.91	$151.97 million	$3.03	19.05
SIKA	$13.52 billion	2.22	$1.26 billion	N/A	N/A

SIKA has higher revenue and earnings than H. B. Fuller.

Risk and Volatility

H. B. Fuller has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, SIKA has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Summary

H. B. Fuller beats SIKA on 9 of the 16 factors compared between the two stocks.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.

About SIKA

Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The company offers tile adhesives and grouts, systems for under-tile waterproofing, sound reduction, renders, decorative finishes for exterior and interior walls, as well as exterior insulation finishing system; develops admixtures and additives for concrete, cement, and mortar production; and flat roofing systems. It also provides a range of technologies used for below and above-ground waterproofing, including flexible membrane systems, liquid-applied membranes, joint waterproofing systems, and waterproofing mortars and injection resins for commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. In addition, the company offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, adhesives, tapes, and spray foams for the building facades, interior finishing, and infrastructure projects. Further, it provides repairing, reinforcing, and protective solutions for concrete structures, such as repair mortars, shrinking grouts, anchoring adhesives, protective coatings, corrosion control, and structural strengthening systems. The company serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessel, industrial lamination, renewable energy, home appliance, and facade engineering industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.