Analyzing Actuant Corporation (ATU) & Hillenbrand (HI)
Actuant Corporation (NYSE: ATU) and Hillenbrand (NYSE:HI) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Risk & Volatility
Actuant Corporation has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.
Insider & Institutional Ownership
76.0% of Hillenbrand shares are held by institutional investors. 4.0% of Actuant Corporation shares are held by insiders. Comparatively, 1.7% of Hillenbrand shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Actuant Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 2.1%. Actuant Corporation pays out -3.6% of its earnings in the form of a dividend. Hillenbrand pays out 42.3% 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 9 consecutive years. Hillenbrand is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Actuant Corporation and Hillenbrand’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Actuant Corporation||$1.10 billion||1.39||$124.87 million||($1.12)||-22.86|
|Hillenbrand||$1.58 billion||1.55||$278.20 million||$1.94||20.03|
Hillenbrand has higher revenue and earnings than Actuant Corporation. Actuant Corporation is trading at a lower price-to-earnings ratio than Hillenbrand, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Actuant Corporation and Hillenbrand, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Actuant Corporation currently has a consensus price target of $25.50, indicating a potential downside of 0.39%. Given Actuant Corporation’s higher possible upside, analysts clearly believe Actuant Corporation is more favorable than Hillenbrand.
This table compares Actuant Corporation and Hillenbrand’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hillenbrand beats Actuant Corporation on 11 of the 17 factors compared between the two stocks.
Actuant Corporation Company Profile
Actuant Corporation designs, manufactures and distributes a range of industrial products and systems to various end markets. The Company operates through three segments: Industrial, Energy and Engineered Solutions. The Company’s Industrial segment is primarily involved in the design, manufacture and distribution of branded hydraulic and mechanical tools to the maintenance, industrial, infrastructure and production automation markets. The Company’s Energy segment provides joint integrity products and services, customized offshore vessel mooring solutions, as well as rope and cable solutions to the global oil and gas, power generation and other energy markets. The Company’s Engineered Solutions segment provides engineered position and motion control systems to original equipment manufacturers (OEM) in various on and off-highway vehicle markets, as well as various other products to the industrial and agricultural markets.
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.
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