Comparing Hillenbrand (HI) and Park-Ohio Holdings Corp. (NASDAQ:PKOH)
Hillenbrand (NYSE: HI) and Park-Ohio Holdings Corp. (NASDAQ:PKOH) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitabiliy, earnings, institutional ownership, analyst recommendations, valuation and dividends.
This table compares Hillenbrand and Park-Ohio Holdings Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Park-Ohio Holdings Corp.||3.00%||16.89%||4.10%|
Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 2.2%. Park-Ohio Holdings Corp. pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Hillenbrand pays out 42.3% of its earnings in the form of a dividend. Park-Ohio Holdings Corp. pays out 15.9% 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. Park-Ohio Holdings Corp. has increased its dividend for 9 consecutive years.
Volatility & Risk
Hillenbrand has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Park-Ohio Holdings Corp. has a beta of 3.47, suggesting that its share price is 247% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Hillenbrand and Park-Ohio Holdings Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Park-Ohio Holdings Corp.||0||1||2||0||2.67|
Park-Ohio Holdings Corp. has a consensus target price of $44.33, indicating a potential upside of 12.95%. Given Park-Ohio Holdings Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe Park-Ohio Holdings Corp. is more favorable than Hillenbrand.
Earnings and Valuation
This table compares Hillenbrand and Park-Ohio Holdings Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hillenbrand||$1.58 billion||1.46||$284.20 million||$1.94||18.84|
|Park-Ohio Holdings Corp.||$1.29 billion||0.37||$106.70 million||$3.15||12.46|
Hillenbrand has higher revenue and earnings than Park-Ohio Holdings Corp.. Park-Ohio Holdings Corp. is trading at a lower price-to-earnings ratio than Hillenbrand, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
78.7% of Hillenbrand shares are owned by institutional investors. Comparatively, 55.9% of Park-Ohio Holdings Corp. shares are owned by institutional investors. 1.7% of Hillenbrand shares are owned by insiders. Comparatively, 31.0% of Park-Ohio Holdings Corp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Hillenbrand beats Park-Ohio Holdings Corp. on 9 of the 17 factors compared between the two stocks.
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 Park-Ohio Holdings Corp.
Park-Ohio Holdings Corp. is a diversified international company providing supply chain management outsourcing services, capital equipment used on their production lines and manufactured components used to assemble its products. The Company operates in three segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides its customers with Total Supply Management, which manages every aspect of supplying production parts and materials to its customers’ manufacturing floor, from strategic planning to program implementation. Assembly Components manufactures products oriented towards fuel efficiency and reduced emission standards. Engineered Products segment operates a group of manufacturing businesses that design and manufacture a range of products, including induction heating and melting systems, pipe threading systems, and forged and machined products. It operates through the subsidiaries of its direct subsidiary, Park-Ohio Industries, Inc.
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