Hillman Solutions (NASDAQ:HLMN) vs. Argan (NYSE:AGX) Head to Head Comparison

Hillman Solutions (NASDAQ:HLMN) and Argan (NYSE:AGX) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hillman Solutions and Argan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hillman Solutions	1	1	3	0	2.40
Argan	0	3	4	1	2.75

Hillman Solutions currently has a consensus target price of $12.50, suggesting a potential upside of 48.10%. Argan has a consensus target price of $470.40, suggesting a potential downside of 40.93%. Given Hillman Solutions’ higher probable upside, analysts plainly believe Hillman Solutions is more favorable than Argan.

Profitability

This table compares Hillman Solutions and Argan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hillman Solutions	2.30%	9.15%	4.71%
Argan	15.48%	36.89%	14.64%

Volatility and Risk

Hillman Solutions has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Argan has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Insider and Institutional Ownership

98.1% of Hillman Solutions shares are owned by institutional investors. Comparatively, 79.4% of Argan shares are owned by institutional investors. 4.9% of Hillman Solutions shares are owned by insiders. Comparatively, 6.7% of Argan shares are owned by 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.

Valuation & Earnings

This table compares Hillman Solutions and Argan”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hillman Solutions	$1.55 billion	1.07	$40.31 million	$0.19	44.42
Argan	$944.61 million	11.82	$137.77 million	$11.38	69.98

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

Summary

Argan beats Hillman Solutions on 11 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 Argan

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 18 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and other commercial firms. The Industrial Services segment provides industrial construction and field services and vessel fabrication services for fertilizer, engineering and construction, forest products, and various other industrial companies in southeast region of the United States. The Telecom Services segment offers trenchless directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks. This segment serves electricity cooperative, state and local government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as federal government facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.