Comparing Hillman Solutions (NASDAQ:HLMN) & Paragon Technologies (OTCMKTS:PGNT)

Paragon Technologies (OTCMKTS:PGNT) and Hillman Solutions (NASDAQ:HLMN) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

98.1% of Hillman Solutions shares are owned by institutional investors. 6.1% of Paragon Technologies 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Paragon Technologies and Hillman Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paragon Technologies	$144.38 million	0.05	-$3.19 million	($0.72)	-6.25
Hillman Solutions	$1.55 billion	1.09	$40.31 million	$0.22	39.55

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

Volatility & Risk

Paragon Technologies has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Hillman Solutions has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Paragon Technologies and Hillman Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paragon Technologies	0	0	0	0	0.00
Hillman Solutions	1	1	3	0	2.40

Hillman Solutions has a consensus price target of $12.50, indicating a potential upside of 43.68%. Given Hillman Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Hillman Solutions is more favorable than Paragon Technologies.

Profitability

This table compares Paragon Technologies and Hillman Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paragon Technologies	-0.85%	N/A	N/A
Hillman Solutions	2.57%	9.11%	4.70%

Summary

Hillman Solutions beats Paragon Technologies on 13 of the 14 factors compared between the two stocks.

About Paragon Technologies

Paragon Technologies, Inc., together with its subsidiaries, engages in the automation, distribution, and real estate activities in North America, Latin America, Europe, and Asia. It offers various systems, software and services, including complete order fulfillment, assembly, product advancing systems, productivity, production and order fulfillment accuracy, and safety enhancements for automated material handling and order processing applications to distribution centers, manufacturers, and warehouses. The company provides towline conveyance used in heavy industrial products manufacturing and warehouses; and technologies composing patented A-Frame and Mobile-Matic robotic picking system. In addition, the company distributes servers, workstations, storage, networking, and audio-visual products, and power protection systems; notebook and desktop computers, printers, projectors, gaming products, and accessories; consumer electronics and home appliances; and offers managed services, printing, electronic documents management, and electronic invoicing, as well as high-capacity storage solutions to businesses. Further, it acquires, invests in, and manages residential real estate; and invests in businesses and marketable securities under the investment management policy. The company was formerly known as SI Handling Systems, Inc. and changed its name to Paragon Technologies, Inc. in April 2000. Paragon Technologies, Inc. was incorporated in 1958 and is headquartered in Easton, Pennsylvania.

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.