Hillman Solutions (NASDAQ:HLMN) and Construction Partners (NASDAQ:ROAD) Critical Analysis

Hillman Solutions (NASDAQ:HLMN) and Construction Partners (NASDAQ:ROAD) are both mid-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Hillman Solutions and Construction Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hillman Solutions	2.44%	9.71%	4.95%
Construction Partners	3.62%	14.42%	4.25%

Earnings & Valuation

This table compares Hillman Solutions and Construction Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hillman Solutions	$1.47 billion	1.41	$17.25 million	$0.19	55.47
Construction Partners	$2.81 billion	2.57	$101.78 million	$1.83	69.75

Construction Partners has higher revenue and earnings than Hillman Solutions. Hillman Solutions is trading at a lower price-to-earnings ratio than Construction Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Hillman Solutions and Construction Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hillman Solutions	0	3	4	0	2.57
Construction Partners	0	3	2	2	2.86

Hillman Solutions presently has a consensus price target of $11.83, indicating a potential upside of 12.27%. Construction Partners has a consensus price target of $122.20, indicating a potential downside of 4.27%. Given Hillman Solutions’ higher probable upside, equities analysts clearly believe Hillman Solutions is more favorable than Construction Partners.

Institutional and Insider Ownership

98.1% of Hillman Solutions shares are held by institutional investors. Comparatively, 94.8% of Construction Partners shares are held by institutional investors. 4.9% of Hillman Solutions shares are held by insiders. Comparatively, 15.7% of Construction Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Hillman Solutions has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Construction Partners has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Summary

Construction Partners beats Hillman Solutions on 10 of the 15 factors compared between the two stocks.

About Hillman Solutions

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.

About Construction Partners

Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; and paving activities, including the construction of roadway base layers and application of asphalt pavement. In addition, the company is involved in site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel, and construction stones that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was founded in 2007 and is headquartered in Dothan, Alabama.