Hillenbrand (HI) versus Welbilt (WBT) Financial Analysis
Hillenbrand (NYSE: HI) and Welbilt (NYSE:WBT) are both mid-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Hillenbrand pays an annual dividend of $0.83 per share and has a dividend yield of 1.9%. Welbilt does not pay a dividend. Hillenbrand pays out 42.1% of its earnings in the form of a dividend. Hillenbrand has increased its dividend for 10 consecutive years.
This is a summary of current ratings for Hillenbrand and Welbilt, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hillenbrand presently has a consensus price target of $50.00, indicating a potential upside of 13.51%. Welbilt has a consensus price target of $23.40, indicating a potential upside of 2.90%. Given Hillenbrand’s higher possible upside, equities analysts clearly believe Hillenbrand is more favorable than Welbilt.
Insider and Institutional Ownership
76.3% of Hillenbrand shares are held by institutional investors. Comparatively, 91.1% of Welbilt shares are held by institutional investors. 1.8% of Hillenbrand shares are held by company insiders. Comparatively, 0.7% of Welbilt shares are held 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.
This table compares Hillenbrand and Welbilt’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Hillenbrand and Welbilt’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hillenbrand||$1.59 billion||1.75||$126.20 million||$1.97||22.36|
|Welbilt||$1.46 billion||2.18||$79.50 million||$0.63||36.10|
Hillenbrand has higher revenue and earnings than Welbilt. Hillenbrand is trading at a lower price-to-earnings ratio than Welbilt, indicating that it is currently the more affordable of the two stocks.
Hillenbrand beats Welbilt on 10 of the 15 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.
Welbilt, Inc., formerly Manitowoc Foodservice, Inc., is a commercial foodservice equipment company. The Company designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market, offering customers operator and patron insights, kitchen solutions, culinary expertise, and implementation support and service. It operates through three segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment consists of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment consists of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and the Philippines. It supplies foodservice equipment to commercial and institutional foodservice operators. Its brands include Cleveland, Convotherm, Delfield, fitKitchen, Frymaster, Garland, Kolpak, Lincoln, Manitowoc Ice, Merco, Merrychef and Multiplex.
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