Critical Analysis: Enlightify (NYSE:ENFY) versus Hawkins (NASDAQ:HWKN)

Hawkins (NASDAQ:HWKNGet Free Report) and Enlightify (NYSE:ENFYGet Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Institutional and Insider Ownership

69.7% of Hawkins shares are held by institutional investors. Comparatively, 0.1% of Enlightify shares are held by institutional investors. 3.7% of Hawkins shares are held by insiders. Comparatively, 14.2% of Enlightify shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Hawkins and Enlightify”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawkins $1.11 billion 2.34 $81.55 million $3.86 32.14
Enlightify $79.21 million 0.00 -$28.41 million ($0.86) -0.00

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

Risk & Volatility

Hawkins has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Enlightify has a beta of -4.61, suggesting that its share price is 561% less volatile than the S&P 500.

Profitability

This table compares Hawkins and Enlightify’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%
Enlightify -22.98% -18.78% -11.03%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hawkins and Enlightify, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawkins 1 2 1 0 2.00
Enlightify 1 0 0 0 1.00

Hawkins presently has a consensus target price of $171.00, suggesting a potential upside of 37.83%. Given Hawkins’ stronger consensus rating and higher probable upside, equities analysts plainly believe Hawkins is more favorable than Enlightify.

Summary

Hawkins beats Enlightify on 13 of the 14 factors compared between the two stocks.

About Hawkins

(Get Free Report)

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 Enlightify

(Get Free Report)

Enlightify, Inc. engages in the research, development, production, and sale of various types of fertilizers and agricultural products. It operates through the following segments: Jinong, Gufeng, and Yuxing. The Jinong segment includes fertilizer products, with focus on humic acid-based compound fertilizer. The Gufeng segment refers to the compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizer. The Yuxing segment develops and produces agricultural products, such as top-grade fruits, vegetables, flowers, and colored seedlings. The company was founded by Tao Li on February 6, 1987 and is headquartered in Xi’an, China.

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