Comparing Welbilt (WBT) & Hillenbrand (HI)

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

Analyst Ratings

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

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

Welbilt currently has a consensus target price of $23.40, indicating a potential upside of 1.17%. Hillenbrand has a consensus target price of $50.00, indicating a potential upside of 11.61%. Given Hillenbrand’s higher probable upside, analysts clearly believe Hillenbrand is more favorable than Welbilt.

Earnings and Valuation

This table compares Welbilt and Hillenbrand’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Welbilt $1.46 billion 2.21 $79.50 million $0.64 36.14
Hillenbrand $1.59 billion 1.78 $126.20 million $1.97 22.74

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.

Profitability

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

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

Risk and Volatility

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

Institutional & Insider Ownership

91.1% of Welbilt shares are owned by institutional investors. Comparatively, 76.3% of Hillenbrand shares are owned by institutional investors. 0.7% of Welbilt shares are owned by company insiders. Comparatively, 1.8% of Hillenbrand shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

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. Welbilt has raised its dividend for 10 consecutive years.

Summary

Hillenbrand beats Welbilt on 9 of the 16 factors compared between the two stocks.

About Welbilt

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.

About Hillenbrand

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.

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