Comparing Twin Disc (NASDAQ:TWIN) and Hillman Solutions (NASDAQ:HLMN)

Twin Disc (NASDAQ:TWIN) and Hillman Solutions (NASDAQ:HLMN) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Risk & Volatility

Twin Disc has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Hillman Solutions has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Twin Disc and Hillman Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twin Disc	9.87%	8.24%	4.23%
Hillman Solutions	1.48%	9.03%	4.53%

Valuation & Earnings

This table compares Twin Disc and Hillman Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twin Disc	$381.27 million	0.96	$27.08 million	$2.66	9.49
Hillman Solutions	$1.63 billion	0.95	$40.31 million	$0.13	61.12

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

Analyst Recommendations

This is a summary of current ratings and target prices for Twin Disc and Hillman Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twin Disc	0	1	2	0	2.67
Hillman Solutions	0	3	2	1	2.67

Twin Disc currently has a consensus price target of $30.00, suggesting a potential upside of 18.84%. Hillman Solutions has a consensus price target of $12.00, suggesting a potential upside of 51.04%. Given Hillman Solutions’ higher possible upside, analysts plainly believe Hillman Solutions is more favorable than Twin Disc.

Institutional & Insider Ownership

65.2% of Twin Disc shares are owned by institutional investors. Comparatively, 98.1% of Hillman Solutions shares are owned by institutional investors. 21.1% of Twin Disc shares are owned by company insiders. Comparatively, 5.3% of Hillman Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Hillman Solutions beats Twin Disc on 9 of the 13 factors compared between the two stocks.

About Twin Disc

Twin Disc, Inc. designs, manufactures and sells power transmission equipment for marine and industrial applications. Its products include marine transmissions, propulsion systems, propellers, surface drives and controls, as well as industrial transmissions, power take-offs and related equipment. The company’s products serve markets that include commercial and recreational marine, construction, agriculture, mining and other industries that use heavy-duty equipment. Twin Disc sells its products through a global network of subsidiaries, distributors and dealers.

About Hillman Solutions

Hillman Solutions Corp. supplies hardware products and merchandising services to retailers and other customers across North America. Its products include fasteners such as screws, nuts and bolts; keys and key-duplication systems; and builder’s hardware and other home-improvement and maintenance products. The company serves customers including hardware stores, home-improvement retailers and mass merchants. Alongside its products, Hillman provides in-store merchandising, inventory-management and related services to help customers stock and sell hardware goods.