Hillenbrand (NYSE: HI) and SPX FLOW (NYSE:FLOW) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Earnings and Valuation

This table compares Hillenbrand and SPX FLOW’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hillenbrand $1.58 billion 1.57 $278.20 million $1.94 20.23
SPX FLOW $1.89 billion 0.90 $190.40 million $0.11 366.67

Hillenbrand has higher revenue, but lower earnings than SPX FLOW. Hillenbrand is trading at a lower price-to-earnings ratio than SPX FLOW, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hillenbrand and SPX FLOW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hillenbrand 7.87% 19.72% 6.87%
SPX FLOW 0.26% 5.87% 1.76%

Risk & Volatility

Hillenbrand has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, SPX FLOW has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500.

Institutional & Insider Ownership

76.0% of Hillenbrand shares are owned by institutional investors. Comparatively, 85.2% of SPX FLOW shares are owned by institutional investors. 1.7% of Hillenbrand shares are owned by company insiders. Comparatively, 3.0% of SPX FLOW shares are owned 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.

Dividends

Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 2.1%. SPX FLOW does not pay a dividend. Hillenbrand pays out 42.3% of its earnings in the form of a dividend. Hillenbrand has raised its dividend for 9 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for Hillenbrand and SPX FLOW, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hillenbrand 0 1 1 0 2.50
SPX FLOW 1 1 2 0 2.25

SPX FLOW has a consensus target price of $38.00, suggesting a potential downside of 5.78%. Given SPX FLOW’s higher possible upside, analysts plainly believe SPX FLOW is more favorable than Hillenbrand.

Summary

Hillenbrand beats SPX FLOW on 9 of the 17 factors compared between the two stocks.

About Hillenbrand

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.

About SPX FLOW

SPX FLOW, Inc. is a global supplier of engineered solutions. As of December 31, 2016, the Company had operations in over 30 countries and sales in over 150 countries around the world. The Company operates in three business segments: Food and Beverage, Power and Energy, and Industrial. Its product portfolio of pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services, supports global industries, including food and beverage, oil and gas, power generation, chemical processing, compressed air and mining. The Food and Beverage segment’s products include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. Its products in the Power and Energy segment include pumps, valves and the related accessories. Its products in the Industrial segment are filtration equipment, hydraulic technologies and heat exchangers.

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