Reviewing H. B. Fuller (NYSE:FUL) & RPM International (NYSE:RPM)

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

Volatility and Risk

RPM International has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, H. B. Fuller has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares RPM International and H. B. Fuller”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPM International	$7.86 billion	1.68	$661.39 million	$5.40	19.21
H. B. Fuller	$3.47 billion	0.76	$151.97 million	$3.59	13.74

RPM International has higher revenue and earnings than H. B. Fuller. H. B. Fuller is trading at a lower price-to-earnings ratio than RPM International, indicating that it is currently the more affordable of the two stocks.

Dividends

RPM International pays an annual dividend of $2.28 per share and has a dividend yield of 2.2%. H. B. Fuller pays an annual dividend of $0.98 per share and has a dividend yield of 2.0%. RPM International pays out 42.2% of its earnings in the form of a dividend. H. B. Fuller pays out 27.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RPM International has increased its dividend for 51 consecutive years and H. B. Fuller has increased its dividend for 57 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for RPM International and H. B. Fuller, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPM International	0	4	11	0	2.73
H. B. Fuller	0	3	4	1	2.75

RPM International currently has a consensus target price of $121.85, indicating a potential upside of 17.44%. H. B. Fuller has a consensus target price of $62.88, indicating a potential upside of 27.45%. Given H. B. Fuller’s stronger consensus rating and higher probable upside, analysts clearly believe H. B. Fuller is more favorable than RPM International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RPM International	8.66%	22.03%	8.91%
H. B. Fuller	5.56%	12.65%	4.97%

Insider & Institutional Ownership

80.9% of RPM International shares are held by institutional investors. Comparatively, 95.9% of H. B. Fuller shares are held by institutional investors. 1.5% of RPM International shares are held by company insiders. Comparatively, 1.8% of H. B. Fuller shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

RPM International beats H. B. Fuller on 11 of the 18 factors compared between the two stocks.

About RPM International

RPM International Inc. manufactures and markets specialty coatings, sealants, building materials and related products for industrial, commercial and consumer markets. Its offerings include protective paints and coatings, roofing and waterproofing systems, flooring, construction sealants and adhesives, and maintenance products. The company sells products through a portfolio of well-known brands, including Rust-Oleum, DAP, Zinsser, Tremco, Carboline and Stonhard. Its products are used in applications ranging from home improvement and building construction to industrial and infrastructure maintenance.

About H. B. Fuller

H.B. Fuller Company is a global specialty chemicals company focused on developing and manufacturing adhesives, sealants and other specialty products. Its solutions are used in applications including packaging, disposable hygiene products, construction, electronics, transportation and consumer goods. The company serves customers across the Americas, Europe, the Middle East and Africa, and Asia Pacific, supplying products for both industrial and consumer-facing applications. Founded in 1887 in St. Paul, Minnesota, H.B. Fuller has grown from a regional business into an international manufacturer.