Critical Contrast: Arkema (OTCMKTS:ARKAY) & HOPEWELL HOLDIN/ADR (OTCMKTS:HOWWY)

Arkema (OTCMKTS:ARKAY) and HOPEWELL HOLDIN/ADR (OTCMKTS:HOWWY) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Arkema and HOPEWELL HOLDIN/ADR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arkema	0	0	0	1	4.00
HOPEWELL HOLDIN/ADR	0	0	0	0	0.00

Profitability

This table compares Arkema and HOPEWELL HOLDIN/ADR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arkema	3.82%	8.04%	4.17%
HOPEWELL HOLDIN/ADR	N/A	N/A	N/A

Earnings & Valuation

This table compares Arkema and HOPEWELL HOLDIN/ADR”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arkema	$10.30 billion	0.64	$452.40 million	$4.87	17.76
HOPEWELL HOLDIN/ADR	$253.58 million	16.46	$1.15 billion	N/A	N/A

HOPEWELL HOLDIN/ADR has lower revenue, but higher earnings than Arkema.

Dividends

Arkema pays an annual dividend of $2.82 per share and has a dividend yield of 3.3%. HOPEWELL HOLDIN/ADR pays an annual dividend of $0.12 per share and has a dividend yield of 2.5%. Arkema pays out 57.9% of its earnings in the form of a dividend.

Volatility and Risk

Arkema has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, HOPEWELL HOLDIN/ADR has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Summary

Arkema beats HOPEWELL HOLDIN/ADR on 8 of the 11 factors compared between the two stocks.

About Arkema

Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company operates in three segments: Adhesive Solutions, Advanced Materials and Coating Solutions, and Intermediates. The Adhesive Solutions segment provides solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. This segment also offers performance polymers, such as specialty polyamides, PVDF, polyimides, fluorospecialties, and polyetherketoneketone; and performance additives which includes molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide. The Advance Materials and Coating Solutions segment offers coating solutions, including comprising EU/US acrylics and coating resins; coating additives, such as sartomer photocure resins and coatex rheology additives. This segment also provides decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbent, water treatment and oil and gas extraction, and 3D printing and electronics industries. The Intermediates segment provides fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.

About HOPEWELL HOLDIN/ADR

Hopewell Holdings Limited (“HHL”), the Hong Kong-based group, was listed on The Stock Exchange of Hong Kong in 1972. HHL and its subsidiaries are active in the fields of property development and investment, investment in infrastructure projects, hotel investment and management, restaurant operations and food catering.