Critical Review: Hillenbrand (HI) & Barnes Group (B)
Hillenbrand (NYSE: HI) and Barnes Group (NYSE:B) are both mid-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Valuation & Earnings
This table compares Hillenbrand and Barnes Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Hillenbrand||$1.54 billion||1.59||$112.80 million||$1.94||20.03|
|Barnes Group||$1.23 billion||2.70||$135.60 million||$2.84||21.80|
Barnes Group has higher revenue, but lower earnings than Hillenbrand. Hillenbrand is trading at a lower price-to-earnings ratio than Barnes Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Hillenbrand has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Barnes Group has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
This table compares Hillenbrand and Barnes Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Hillenbrand and Barnes Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hillenbrand currently has a consensus price target of $46.00, indicating a potential upside of 18.40%. Barnes Group has a consensus price target of $65.60, indicating a potential upside of 5.98%. Given Hillenbrand’s higher probable upside, analysts clearly believe Hillenbrand is more favorable than Barnes Group.
Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 2.1%. Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Hillenbrand pays out 42.3% of its earnings in the form of a dividend. Barnes Group pays out 19.7% 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. Hillenbrand has raised its dividend for 4 consecutive years and Barnes Group has raised its dividend for 9 consecutive years.
Insider and Institutional Ownership
76.1% of Hillenbrand shares are owned by institutional investors. Comparatively, 86.8% of Barnes Group shares are owned by institutional investors. 1.7% of Hillenbrand shares are owned by company insiders. Comparatively, 8.5% of Barnes Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Barnes Group beats Hillenbrand on 12 of the 16 factors compared between the two stocks.
Hillenbrand Company Profile
Hillenbrand, Inc. is a diversified industrial company with multiple brands that serve a range of industries across the globe. The Company operates in two segments: the Process Equipment Group and Batesville. The Process Equipment Group businesses design, develop, manufacture and service engineered industrial equipment throughout the world. The Process Equipment Group segment is a provider of compounding, extrusion and material handling; size reduction; screening and separating, and flow control products and services for a range of manufacturing and other industrial processes. It offers equipment for industries, including plastics, chemicals, fertilizers and mining. Its Batesville segment operates in the North American death care industry, and manufactures and sells funeral service products, including burial caskets, cremation caskets, containers and urns, selection room display fixtures, other personalization and memorialization products, and Web-based technology applications.
Barnes Group Company Profile
Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.
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