Hillenbrand (NYSE: HI) and Dover Corporation (NYSE:DOV) are both mid-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitabiliy.

Profitability

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

Net Margins Return on Equity Return on Assets
Hillenbrand 7.85% 20.27% 6.88%
Dover Corporation 8.33% 12.93% 5.11%

Analyst Ratings

This is a summary of current ratings and price targets for Hillenbrand and Dover Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hillenbrand 0 1 1 0 2.50
Dover Corporation 0 9 6 0 2.40

Dover Corporation has a consensus target price of $85.89, suggesting a potential upside of 0.81%. Given Dover Corporation’s higher probable upside, analysts plainly believe Dover Corporation is more favorable than Hillenbrand.

Dividends

Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 2.2%. Dover Corporation pays an annual dividend of $1.76 per share and has a dividend yield of 2.1%. Hillenbrand pays out 43.2% of its earnings in the form of a dividend. Dover Corporation pays out 47.4% 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 and Dover Corporation has raised its dividend for 61 consecutive years. Hillenbrand is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

79.1% of Hillenbrand shares are held by institutional investors. Comparatively, 84.6% of Dover Corporation shares are held by institutional investors. 1.7% of Hillenbrand shares are held by company insiders. Comparatively, 2.5% of Dover Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Hillenbrand has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Dover Corporation has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hillenbrand and Dover Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hillenbrand $1.55 billion 1.48 $272.30 million $1.90 19.18
Dover Corporation $6.99 billion 1.90 $1.14 billion $3.71 22.97

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

Summary

Dover Corporation beats Hillenbrand on 12 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 Dover Corporation

Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company’s segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company’s Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.

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