Soitec (OTCMKTS:SLOIF) and Hillenbrand (NYSE:HI) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Valuation and Earnings

This table compares Soitec and Hillenbrand’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Soitec N/A N/A N/A N/A N/A
Hillenbrand $1.77 billion 1.43 $76.60 million $2.43 16.71

Hillenbrand has higher revenue and earnings than Soitec.

Analyst Recommendations

This is a summary of recent recommendations for Soitec and Hillenbrand, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Soitec 0 0 0 0 N/A
Hillenbrand 0 0 2 0 3.00

Hillenbrand has a consensus target price of $59.50, indicating a potential upside of 46.52%. Given Hillenbrand’s higher probable upside, analysts clearly believe Hillenbrand is more favorable than Soitec.

Risk & Volatility

Soitec has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Dividends

Hillenbrand pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. Soitec does not pay a dividend. Hillenbrand pays out 34.6% of its earnings in the form of a dividend. Hillenbrand has raised its dividend for 11 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Soitec N/A N/A N/A
Hillenbrand 4.87% 20.72% 7.94%

Institutional & Insider Ownership

76.4% of Hillenbrand shares are owned by institutional investors. 3.4% of Hillenbrand shares are owned 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.

Summary

Hillenbrand beats Soitec on 10 of the 12 factors compared between the two stocks.

About Soitec

Soitec S.A. designs and produces semiconductor materials worldwide. It offers silicon-on-insulator (SOI) wafers for processor and connectivity system on chips (SoCs), including partially-depleted SOI, fully-depleted SOI, and FinFET products. The company also provides SOIs for RF front-end modules, including RFeSI-enhanced signal integrity substrates, HR-SOI substrates, and stacking for RF substrates. In addition, it offers SOI wafers for manufacturing smart power ICs; and photonics-SOIs for high-speed optical transceivers in data centers. The company's products are used to manufacture chips for consumer electronics devices and mobile electronics in smartphones, automotive applications, the Internet of Things, datacenters, etc. The company has a strategic collaboration with Samsung Electronics Co., Ltd. for the supply of silicon-on-insulator wafers; and strategic partnership with Shanghai Simgui Technology Co., Ltd. to deliver RF-SOI and Power-SOI products. Soitec S.A. was founded in 1992 and is headquartered in Bernin, France.

About Hillenbrand

Hillenbrand, Inc. operates as a diversified industrial company in the United States and internationally. The company operates in two segments, Process Equipment Group and Batesville. The Process Equipment Group segment designs, engineers, manufactures, markets, and services process and material handling equipment and systems for various industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals and mining, energy, wastewater treatment, forest products, and other general industrials. It provides twin screw compounding and extrusion machines under the Coperion brand; and material handling equipment, such as pneumatic and hydraulic conveying equipment, high-precision feeders, and blenders, as well as rotary, diverter, and slide gate valves under the Coperion and Coperion K-Tron brand names. This segment also offers size reduction equipment under the Pennsylvania Crusher, Gundlach, and Jeffrey Rader brands; screening and separating equipment under the Rotex brand name; piston and piston diaphragm pump technology under the ABEL brand; pinch and duckbill check valves under the Red Valve, Tideflex Technologies, and RKL Controls brand names; and replacement parts and services. It sells equipment and systems to customers directly, as well as through a network of independent sales representatives and distributors. The Batesville segment designs, manufactures, distributes, and sells funeral services products and solutions, such as burial caskets, cremation caskets, containers and urns, other personalization and memorialization products, and Web-based technology applications to licensed funeral professionals operating licensed funeral establishments. Hillenbrand, Inc. was founded in 2007 and is headquartered in Batesville, Indiana.

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