Financial Contrast: HEXPOL AB (publ) (OTCMKTS:HXPLF) vs. Arcadium Lithium (NYSE:ALTM)

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

Dividends

HEXPOL AB (publ) pays an annual dividend of $9.00 per share and has a dividend yield of 89.2%. Arcadium Lithium pays an annual dividend of $6.00 per share and has a dividend yield of 108.0%. HEXPOL AB (publ) pays out 29.4% of its earnings in the form of a dividend. Arcadium Lithium pays out 576.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares HEXPOL AB (publ) and Arcadium Lithium”s top-line revenue, earnings per share 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	0.33
Arcadium Lithium	$1.21 billion	4.95	$1.12 billion	$1.04	5.34

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

Analyst Ratings

This is a breakdown of recent recommendations for HEXPOL AB (publ) and Arcadium Lithium, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HEXPOL AB (publ)	0	0	0	0	N/A
Arcadium Lithium	0	2	1	1	2.75

Arcadium Lithium has a consensus price target of $11.00, indicating a potential upside of 98.02%. Given Arcadium Lithium’s higher possible upside, analysts plainly believe Arcadium Lithium is more favorable than HEXPOL AB (publ).

Profitability

This table compares HEXPOL AB (publ) and Arcadium Lithium’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
Arcadium Lithium	N/A	N/A	N/A

Institutional & Insider Ownership

40.0% of HEXPOL AB (publ) shares are owned by institutional investors. Comparatively, 27.0% of Arcadium Lithium shares are owned by institutional investors. 0.4% of Arcadium Lithium shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Arcadium Lithium beats HEXPOL AB (publ) on 7 of the 10 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 Arcadium Lithium

Arcadium Lithium plc engages in the production of lithium chemicals products in the Asia Pacific, North America, Europe, the Middle East, Africa, and Latin America. It offers battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal for electric vehicles, electronics, agricultural, industrial, greases, polymers, pharmaceutical, battery, and aerospace applications. The company also owns interest in various properties located in Argentina, Canada, and Western Australia. Arcadium Lithium plc was founded in 1944 and is based in Shannon, Ireland.