Hillenbrand (NYSE: HI) and Milacron Holdings Corp. (NYSE:MCRN) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

76.0% of Hillenbrand shares are held by institutional investors. 1.7% of Hillenbrand shares are held by company insiders. Comparatively, 3.4% of Milacron Holdings Corp. 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.

Dividends

Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 2.2%. Milacron Holdings Corp. does not pay a dividend. Hillenbrand pays out 42.3% of its earnings in the form of a dividend. Hillenbrand has increased its dividend for 9 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Hillenbrand and Milacron Holdings Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hillenbrand 0 1 1 0 2.50
Milacron Holdings Corp. 0 0 2 0 3.00

Milacron Holdings Corp. has a consensus price target of $22.00, indicating a potential upside of 34.56%. Given Milacron Holdings Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe Milacron Holdings Corp. is more favorable than Hillenbrand.

Risk & Volatility

Hillenbrand has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Milacron Holdings Corp. has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hillenbrand and Milacron Holdings Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hillenbrand $1.58 billion 1.46 $278.20 million $1.94 18.92
Milacron Holdings Corp. $1.18 billion 0.96 $188.00 million ($0.10) -163.48

Hillenbrand has higher revenue and earnings than Milacron Holdings Corp.. Milacron 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.

Profitability

This table compares Hillenbrand and Milacron Holdings Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hillenbrand 7.87% 19.72% 6.87%
Milacron Holdings Corp. -0.57% -53.40% 6.51%

Summary

Hillenbrand beats Milacron Holdings Corp. 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 Milacron Holdings Corp.

Milacron Holdings Corp. is engaged in the manufacture, distribution, and service of engineered and customized systems used in the plastic technology and processing industry. The Company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies. The Company has a product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment. It produces process control systems, mold bases and components, and maintenance, repair and operating (MRO) supplies and fluid technology. As of December 31, 2016, the Company’s products were sold in over 100 countries across six continents. Its customers include original equipment manufacturers (OEMs), molders and mold-makers. Its customer base covers a range of end-market applications, including packaging, automotive, medical, construction, consumer goods and electronics.

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