International Flavors & Fragrances (NYSE:IFF) vs. Huabao International (OTCMKTS:HUIHY) Financial Contrast

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

Profitability

This table compares Huabao International and International Flavors & Fragrances’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huabao International	N/A	N/A	N/A
International Flavors & Fragrances	-3.20%	7.67%	4.07%

Institutional and Insider Ownership

96.0% of International Flavors & Fragrances shares are held by institutional investors. 0.2% of International Flavors & Fragrances shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Huabao International and International Flavors & Fragrances, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huabao International	0	0	0	0	0.00
International Flavors & Fragrances	1	4	13	0	2.67

International Flavors & Fragrances has a consensus target price of $90.09, suggesting a potential upside of 24.41%. Given International Flavors & Fragrances’ stronger consensus rating and higher probable upside, analysts plainly believe International Flavors & Fragrances is more favorable than Huabao International.

Dividends

Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. International Flavors & Fragrances pays out -116.8% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Huabao International and International Flavors & Fragrances”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huabao International	$484.77 million	3.33	-$54.09 million	N/A	N/A
International Flavors & Fragrances	$10.89 billion	1.70	-$361.00 million	($1.37)	-52.86

Huabao International has higher earnings, but lower revenue than International Flavors & Fragrances.

Volatility & Risk

Huabao International has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, International Flavors & Fragrances has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Summary

International Flavors & Fragrances beats Huabao International on 11 of the 14 factors compared between the two stocks.

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.

About International Flavors & Fragrances

International Flavors & Fragrances, Inc. engages in the manufacture and supply of flavors and fragrances used in the food, beverage, personal care, and household products industries. It operates through the following segments: Nourish, Health & Biosciences, Scent and Pharma Solutions. The Nourish segment consists of legacy Taste segment combined with N&B’s Food & Beverage division and the food protection business of N&B’s Health & Biosciences division. The Health & Biosciences business consists of a biotechnology-driven portfolio of enzymes, food cultures, probiotics and specialty ingredients for food, home and personal care, and health and wellness applications. The Scent business creates fragrance compounds, fragrance ingredients and cosmetic ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. The Pharma Solutions business produces a vast portfolio including cellulosics and seaweed-based pharma excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling. The company was founded in 1833 and is headquartered in New York, NY.