Hillenbrand (HI) and Welbilt (WBT) Head-To-Head Survey

Hillenbrand (NYSE: HI) and Welbilt (NYSE:WBT) are both mid-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Valuation and Earnings

This table compares Hillenbrand and Welbilt’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hillenbrand $1.59 billion 1.79 $126.20 million $1.98 22.78
Welbilt $1.46 billion 2.20 $79.50 million $0.64 35.84

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.

Dividends

Hillenbrand pays an annual dividend of $0.83 per share and has a dividend yield of 1.8%. Welbilt does not pay a dividend. Hillenbrand pays out 41.9% of its earnings in the form of a dividend. Hillenbrand has raised its dividend for 10 consecutive years.

Risk & Volatility

Hillenbrand has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Welbilt has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500.

Profitability

This table compares Hillenbrand and Welbilt’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hillenbrand 7.94% 19.26% 7.02%
Welbilt 6.14% -2,645.52% 5.23%

Institutional & Insider Ownership

76.1% 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 insiders. Comparatively, 0.7% of Welbilt shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Hillenbrand and Welbilt, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hillenbrand 0 2 2 0 2.50
Welbilt 0 3 3 0 2.50

Hillenbrand currently has a consensus price target of $50.00, indicating a potential upside of 10.86%. Welbilt has a consensus price target of $23.40, indicating a potential upside of 2.01%. Given Hillenbrand’s higher probable upside, equities research analysts plainly believe Hillenbrand is more favorable than Welbilt.

Summary

Hillenbrand beats Welbilt on 10 of the 16 factors compared between the two stocks.

Hillenbrand Company Profile

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 Company Profile

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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