Analyzing Lianhe Sowell International Group (NASDAQ:LHSW) and Hillenbrand (NYSE:HI)

Hillenbrand (NYSE:HI) and Lianhe Sowell International Group (NASDAQ:LHSW) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Hillenbrand and Lianhe Sowell International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hillenbrand	-0.63%	13.53%	3.82%
Lianhe Sowell International Group	N/A	N/A	N/A

Insider and Institutional Ownership

89.1% of Hillenbrand shares are owned by institutional investors. 2.0% of Hillenbrand shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hillenbrand and Lianhe Sowell International Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hillenbrand	$2.86 billion	0.78	-$211.00 million	($0.25)	-126.66
Lianhe Sowell International Group	N/A	N/A	N/A	N/A	N/A

Lianhe Sowell International Group has lower revenue, but higher earnings than Hillenbrand.

Analyst Ratings

This is a breakdown of current recommendations for Hillenbrand and Lianhe Sowell International Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hillenbrand	0	5	0	0	2.00
Lianhe Sowell International Group	1	0	0	0	1.00

Hillenbrand currently has a consensus target price of $34.67, indicating a potential upside of 9.48%. Given Hillenbrand’s stronger consensus rating and higher probable upside, analysts clearly believe Hillenbrand is more favorable than Lianhe Sowell International Group.

Summary

Hillenbrand beats Lianhe Sowell International Group on 7 of the 8 factors compared between the two stocks.

About Hillenbrand

Hillenbrand, Inc. operates as an industrial company in the United States and internationally. The company operates through two segments, Advanced Process Solutions and Molding Technology Solutions. The Advanced Process Solutions segment designs, engineers, manufactures, markets, and services process and material handling equipment and systems comprising compounding, extrusion, and material handling equipment, equipment system design services, as well as offers mixing technology, ingredient automation, and portion process; and provides screening and separating equipment for various industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals, energy, wastewater treatment, forest products, and other general industrials. The Molding Technology Solutions segment offers injection molding and extrusion equipment; hot runner systems; process control systems; mold bases and components; maintenance and repair services; and aftermarket parts and service for various industries, including automotive, consumer goods, medical, packaging, construction, and electronics. The company was founded in 1906 and is headquartered in Batesville, Indiana.

About Lianhe Sowell International Group

Lianhe Sowell International Group Ltd. is a holding company, which engages in trading of electronic products and software development. Its products include Intelligent traffic, low voltage Intelligent Integration, Industrial Intelligence, Industrial machine vision, and precision visual Al painting robot. The company was founded by Yue Zhu on April 6, 2007 and is headquartered in Shenzhen, China.