Critical Analysis: Worthington Industries (WOR) vs. Handy & Harman (HNH)
Worthington Industries (NYSE: WOR) and Handy & Harman (NASDAQ:HNH) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.
This is a summary of recent recommendations and price targets for Worthington Industries and Handy & Harman, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Handy & Harman||0||0||0||0||N/A|
Worthington Industries presently has a consensus price target of $46.50, indicating a potential upside of 5.37%. Given Worthington Industries’ higher possible upside, research analysts clearly believe Worthington Industries is more favorable than Handy & Harman.
Risk and Volatility
Worthington Industries has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Handy & Harman has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
This table compares Worthington Industries and Handy & Harman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Handy & Harman||0.91%||4.84%||1.01%|
Earnings and Valuation
This table compares Worthington Industries and Handy & Harman’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Worthington Industries||$3.01 billion||0.93||$306.33 million||$2.84||15.54|
|Handy & Harman||$957.45 million||0.39||$110.27 million||$0.71||42.68|
Worthington Industries has higher revenue and earnings than Handy & Harman. Worthington Industries is trading at a lower price-to-earnings ratio than Handy & Harman, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
52.7% of Worthington Industries shares are held by institutional investors. Comparatively, 88.2% of Handy & Harman shares are held by institutional investors. 31.3% of Worthington Industries shares are held by insiders. Comparatively, 6.1% of Handy & Harman shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Worthington Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. Handy & Harman does not pay a dividend. Worthington Industries pays out 29.6% of its earnings in the form of a dividend. Worthington Industries has increased its dividend for 6 consecutive years.
Worthington Industries beats Handy & Harman on 11 of the 15 factors compared between the two stocks.
About Worthington Industries
Worthington Industries, Inc. is a metals manufacturing company, focused on value-added steel processing and manufactured metal products. The Company’s segments include Steel Processing, Pressure Cylinders, Engineered Cabs and Other. The Steel Processing segment buys coils of steel from integrated steel mills and mini-mills, and also toll processes steel for steel mills, end users, service centers and other processors. The Pressure Cylinders segment manufactures and sells filled and unfilled pressure cylinders, tanks, hand torches, and oil and gas equipment along with various accessories and related products for end use market applications. The Engineered Cabs is a non-captive designer and manufacturer of custom-engineered open and enclosed cabs and operator stations and custom fabrications for heavy mobile equipment used in the agricultural, construction, forestry, mining and military industries. The Other segment includes Construction Services and Worthington Energy Innovations.
About Handy & Harman
Handy & Harman Ltd. is a holding company. The Company, through its subsidiaries, is a diversified manufacturer of engineered industrial products. The Company’s segments include Joining Materials, Tubing, Building Materials, Performance Materials, Electrical Products, and Kasco Blades and Route Repair Services (Kasco). Joining Materials fabricates precious metals and their alloys into brazing alloys. Tubing manufactures a range of steel tubing products. Building Materials manufactures and supplies products to the commercial construction and building industries. Performance Materials manufactures sheet and mechanically formed glass manufactures sheet and mechanically formed glass, quartz, carbon and aramid materials. Electrical Products segment designs, manufactures and markets power electronics and power protection, among others. Kasco provides meat-room blade products, repair services and resale products for the meat and deli departments of supermarkets and restaurants, among others.
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