Hawkins (NASDAQ:HWKN – Get Free Report) and Northern Technologies International (NASDAQ:NTIC – Get Free Report) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Institutional and Insider Ownership
69.7% of Hawkins shares are held by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are held by institutional investors. 3.7% of Hawkins shares are held by insiders. Comparatively, 24.9% of Northern Technologies International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Hawkins and Northern Technologies International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hawkins | 1 | 2 | 1 | 0 | 2.00 |
| Northern Technologies International | 1 | 1 | 0 | 0 | 1.50 |
Profitability
This table compares Hawkins and Northern Technologies International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hawkins | 7.29% | 15.42% | 8.22% |
| Northern Technologies International | -1.26% | -0.45% | -0.33% |
Volatility and Risk
Hawkins has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.
Valuation and Earnings
This table compares Hawkins and Northern Technologies International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hawkins | $1.08 billion | 2.39 | $81.55 million | $3.86 | 32.12 |
| Northern Technologies International | $84.24 million | 0.89 | $20,000.00 | ($0.12) | -65.50 |
Hawkins has higher revenue and earnings than Northern Technologies International. Northern Technologies International is trading at a lower price-to-earnings ratio than Hawkins, indicating that it is currently the more affordable of the two stocks.
Summary
Hawkins beats Northern Technologies International on 13 of the 14 factors compared between the two stocks.
About Hawkins
Hawkins, Inc. operates as a specialty chemical and ingredients company in the United States. It operates through three segments: Industrial, Water Treatment, and Health and Nutrition. The Industrial segment offers industrial chemicals, products, and services to agriculture, chemical processing, electronics, energy, food, pharmaceutical, and plating industries. This segment manufactures sodium hypochlorite and agricultural products, as well as various food-grade and pharmaceutical products, such as liquid phosphates, lactates, other blended products, and agricultural products; and receives, stores, and distributes various chemicals comprising liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia, and potassium hydroxide. It also repackages water treatment chemicals and bulk industrial chemicals; and performs custom blending of chemicals. The Water Treatment segment provides chemicals, products, equipment, services, and solutions for potable water, municipal and industrial wastewater, industrial process water, non-residential swimming pool water, and agriculture water. The Health and Nutrition segment offers ingredient distribution, processing, and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, and health and wellness products. Its products portfolio includes minerals, vitamins and amino acids, excipients, joint products, botanicals and herbs, sweeteners, and enzymes. Hawkins, Inc. was founded in 1938 and is headquartered in Roseville, Minnesota.
About Northern Technologies International
Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.
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