Head to Head Analysis: Hillman Solutions (NASDAQ:HLMN) versus Kornit Digital (NASDAQ:KRNT)

Kornit Digital (NASDAQ:KRNT) and Hillman Solutions (NASDAQ:HLMN) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Kornit Digital and Hillman Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kornit Digital	1	3	2	0	2.17
Hillman Solutions	1	2	2	1	2.50

Kornit Digital presently has a consensus price target of $21.50, indicating a potential upside of 17.42%. Hillman Solutions has a consensus price target of $12.67, indicating a potential upside of 78.15%. Given Hillman Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Hillman Solutions is more favorable than Kornit Digital.

Earnings and Valuation

This table compares Kornit Digital and Hillman Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kornit Digital	$215.85 million	3.64	-$13.52 million	($0.48)	-38.15
Hillman Solutions	$1.60 billion	0.86	$40.31 million	$0.22	32.32

Hillman Solutions has higher revenue and earnings than Kornit Digital. Kornit Digital is trading at a lower price-to-earnings ratio than Hillman Solutions, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.8% of Kornit Digital shares are owned by institutional investors. Comparatively, 98.1% of Hillman Solutions shares are owned by institutional investors. 0.2% of Kornit Digital shares are owned by company insiders. Comparatively, 5.3% of Hillman Solutions 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.

Profitability

This table compares Kornit Digital and Hillman Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kornit Digital	-9.42%	-1.00%	-0.91%
Hillman Solutions	2.57%	9.11%	4.70%

Volatility & Risk

Kornit Digital has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Hillman Solutions has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Summary

Hillman Solutions beats Kornit Digital on 12 of the 14 factors compared between the two stocks.

About Kornit Digital

Kornit Digital Ltd. develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. Its solutions include digital printing systems, ink and other consumables, associated software, and value-added services. The company's products and services include direct-to-garment printing platform for smaller industrial operators to mass producers; NeoPigment ink and other consumables; QuickP designer software; and system upgrade kits, maintenance and support, consulting, and professional services. It serves decorators, online businesses, brand owners, and contract printers. Kornit Digital Ltd. was incorporated in 2002 and is headquartered in Rosh Haayin, Israel.

About Hillman Solutions

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.