Critical Contrast: Orbia Advance (OTCMKTS:MXCHY) & H. B. Fuller (NYSE:FUL)

Orbia Advance (OTCMKTS:MXCHY) and H. B. Fuller (NYSE:FUL) are both mid-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares Orbia Advance 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
Orbia Advance	$7.51 billion	0.28	$145.00 million	N/A	N/A
H. B. Fuller	$3.47 billion	0.94	$151.97 million	$3.00	20.04

H. B. Fuller has lower revenue, but higher earnings than Orbia Advance.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orbia Advance	N/A	N/A	N/A
H. B. Fuller	4.38%	12.21%	4.55%

Risk and Volatility

Orbia Advance has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, H. B. Fuller has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Institutional & Insider Ownership

95.9% of H. B. Fuller shares are held by institutional investors. 2.0% of H. B. Fuller shares are held by company insiders. 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.

Analyst Recommendations

This is a breakdown of current recommendations for Orbia Advance and H. B. Fuller, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbia Advance	0	0	2	0	3.00
H. B. Fuller	1	2	3	0	2.33

H. B. Fuller has a consensus price target of $67.75, suggesting a potential upside of 12.69%. Given H. B. Fuller’s higher probable upside, analysts plainly believe H. B. Fuller is more favorable than Orbia Advance.

Summary

H. B. Fuller beats Orbia Advance on 10 of the 12 factors compared between the two stocks.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.