Head-To-Head Review: Hexagon (OTCMKTS:HXGBY) versus Codan (OTCMKTS:CODAF)

Hexagon (OTCMKTS:HXGBY) and Codan (OTCMKTS:CODAF) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Insider and Institutional Ownership

4.7% of Codan shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Hexagon and Codan”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hexagon	$5.85 billion	5.29	$1.11 billion	$0.26	44.31
Codan	N/A	N/A	N/A	C$0.05	456.44

Hexagon has higher revenue and earnings than Codan. Hexagon is trading at a lower price-to-earnings ratio than Codan, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hexagon and Codan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hexagon	12.09%	10.64%	6.45%
Codan	N/A	N/A	N/A

Dividends

Hexagon pays an annual dividend of $0.11 per share and has a dividend yield of 1.0%. Codan pays an annual dividend of C$0.09 per share and has a dividend yield of 0.4%. Hexagon pays out 42.3% of its earnings in the form of a dividend. Codan pays out 163.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hexagon is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for Hexagon and Codan, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hexagon	1	3	1	0	2.00
Codan	0	0	0	0	0.00

Summary

Hexagon beats Codan on 9 of the 11 factors compared between the two stocks.

About Hexagon

Hexagon AB (publ) provides geospatial and industrial enterprise solutions worldwide. The company offers analysis and management, machine control, embedded electronics, monitoring, and planning and optimization solutions to agriculture division; 3D design and visualization, enterprise asset and asset lifecycle management, OT/ICS cyber security, engineering and schematics, enterprise project performance, operation and maintenance, procurement, fabrication, and construction services for asset lifecycle intelligence division; GNSS and SMART antennas, anti-jam systems, autonomy kits and services, correction services, GNSS/INS receivers and post processing, resilience and integrity technology, and visualization software for autonomy and positioning division; and 3D surveillance, AEC and survey software, geospatial content, machine control, digital realities platform, laser scanning and measurement tools, levels, total stations, airborne, monitoring, document and verification solutions, detection, GNSS, and mobile mapping system to geosystem division. It also provides CAD CAM and CAE software, CNC simulation and computed tomography software, measurement and inspection hardware and software, manufacturing project management, digital transformation for manufacturing, environmental health and safety, and quality management systems to manufacturing intelligence division; and HxGN mine protect, operate, monitoring, measure, and plan services, as well as HxGN autonomous and underground mining services to mining division. In addition, the company offers GIS, imagery analysis and data management, collaboration, government, transportation, and defense solutions; and utility GIS and outage management services, and public safety and geospatial platform to safety, infrastructure, and geospatial division. The company was incorporated in 1975 and is based in Stockholm, Sweden.

About Codan

Codan Limited develops technology solutions for United Nations organizations, mining companies, security and military groups, government departments, individuals, and small-scale miners. It operates through Communications and Metal Detection segments. The Communications segment designs, develops, manufactures, and markets communication equipment that consists of DTC radio solutions for the wireless transmission of video and other data applications; and Zetron communications solutions. The Metal Detection segment designs, develops, manufactures, and markets metal detection equipment, such as handheld metal detecting technologies for recreational, gold mining, demining, and military markets. The company sells its products through a network of dealers, distributors, and agents in Australia, Canada, Denmark, the United Kingdom, the United States, Brazil, India, Ireland, Mexico, Singapore, the United Arab Emirates, and internationally. Codan Limited was incorporated in 1959 and is headquartered in Mawson Lakes, Australia.