Reviewing RPM International (NYSE:RPM) & Huabao International (OTCMKTS:HUIHY)

RPM International (NYSE:RPM) and Huabao International (OTCMKTS:HUIHY) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Dividends

RPM International pays an annual dividend of $2.16 per share and has a dividend yield of 2.0%. Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. RPM International pays out 41.6% of its earnings in the form of a dividend. RPM International has raised its dividend for 51 consecutive years. RPM International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

RPM International has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Huabao International has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Earnings & Valuation

This table compares RPM International and Huabao International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPM International	$7.37 billion	1.84	$688.69 million	$5.19	20.44
Huabao International	$484.77 million	3.33	-$54.08 million	N/A	N/A

RPM International has higher revenue and earnings than Huabao International.

Profitability

This table compares RPM International and Huabao International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RPM International	8.63%	22.55%	8.75%
Huabao International	N/A	N/A	N/A

Insider and Institutional Ownership

81.0% of RPM International shares are owned by institutional investors. 1.6% of RPM International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RPM International and Huabao International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPM International	0	4	11	0	2.73
Huabao International	0	0	0	0	0.00

RPM International currently has a consensus target price of $127.42, suggesting a potential upside of 20.14%. Given RPM International’s stronger consensus rating and higher possible upside, analysts plainly believe RPM International is more favorable than Huabao International.

Summary

RPM International beats Huabao International on 13 of the 15 factors compared between the two stocks.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.

About Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.