Critical Contrast: Hengan International Group (OTCMKTS:HEGIY) vs. Fuchs (OTCMKTS:FUPBY)

Profitability

This table compares Fuchs and Hengan International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fuchs	8.52%	16.61%	12.17%
Hengan International Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Fuchs and Hengan International Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fuchs	$3.83 billion	1.95	$306.29 million	$0.62	21.67
Hengan International Group	$3.36 billion	1.03	$395.71 million	N/A	N/A

Hengan International Group has lower revenue, but higher earnings than Fuchs.

Institutional and Insider Ownership

0.0% of Hengan International Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Fuchs pays an annual dividend of $0.19 per share and has a dividend yield of 1.4%. Hengan International Group pays an annual dividend of $0.88 per share and has a dividend yield of 5.9%. Fuchs pays out 30.6% of its earnings in the form of a dividend.

Risk & Volatility

Fuchs has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Hengan International Group has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Summary

Fuchs beats Hengan International Group on 6 of the 10 factors compared between the two stocks.

About Fuchs

Fuchs SE develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, dry coatings, gear and hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, compressor and refrigeration oils, release agents, slideways oils, fluids and industrial oils, textile machine oils, and turbine oils. In addition, the company offers lubricating greases comprising assembly pastes, biodegradable greases, food grade greases, multi-purpose/long-life greases, pastes for extreme temperatures, perfluorinated pastes, and wheel bearing greases, as well as gear boxes, and greases for central lubricating system, extreme temperature, machine tools, plain and roller bearings, rail vehicles, spray cans or rattle cans, and solid lubricants. Further, it provides metal processing lubricants consisting of cleaners, corrosion preventives, cutting and grinding, forming lubricants, and quenching oils; and special application lubricants for application equipment, chain lubrication, dry coatings, food and beverage, gears, sugar processing, railway traffic, plain and roller bearings, glass manufacturing process, hot forming, maintenance, open gears, pastes, release agents, other specialties, special greases, and wind power plants. Additionally, the company offers open gear and surface coating services. The company was formerly known as Fuchs Petrolub SE and changed its name to Fuchs SE in July 2023. Fuchs SE was founded in 1931 and is headquartered in Mannheim, Germany.

About Hengan International Group

Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People's Republic of China and internationally. The company offers pocket handkerchiefs, box and soft tissue papers, kitchen towels/papers, toilet rolls, first-aid products, enema, garbage and food bags, preservation papers, table cloths and disposable toilet brush, sanitary napkins, pantiliners, overnight pants, wet tissues, maternal and child care products, adult and baby diapers, and cleansing products. It is also involved in the trading of various products for ladies, pregnant women, infants, and kids, as well as disposable fiber-based products; and engages in the ecommerce business. In addition, the company manufactures and distributes heat and power; and manufactures, distributes, and sells gas, protective equipment, medical instrument, skin care products, antiseptics, and household products. Hengan International Group Company Limited was founded in 1985 and is headquartered in Jinjiang, the People's Republic of China.