Analyzing Hillenbrand (HI) & Oil-Dri Co. Of America (ODC)

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

Institutional and Insider Ownership

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78.1% of Hillenbrand shares are owned by institutional investors. Comparatively, 54.0% of Oil-Dri Co. Of America shares are owned by institutional investors. 1.8% of Hillenbrand shares are owned by company insiders. Comparatively, 13.9% of Oil-Dri Co. Of America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Hillenbrand pays an annual dividend of $0.83 per share and has a dividend yield of 1.8%. Oil-Dri Co. Of America pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Hillenbrand pays out 39.3% of its earnings in the form of a dividend. Hillenbrand has increased its dividend for 10 consecutive years and Oil-Dri Co. Of America has increased its dividend for 15 consecutive years. Oil-Dri Co. Of America is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Hillenbrand and Oil-Dri Co. Of America’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hillenbrand $1.59 billion 1.79 $126.20 million $2.11 21.45
Oil-Dri Co. Of America $262.31 million 1.11 $10.79 million N/A N/A

Hillenbrand has higher revenue and earnings than Oil-Dri Co. Of America.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hillenbrand and Oil-Dri Co. Of America, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hillenbrand 0 1 2 0 2.67
Oil-Dri Co. Of America 0 0 0 0 N/A

Hillenbrand currently has a consensus price target of $53.00, suggesting a potential upside of 17.13%. Given Hillenbrand’s higher possible upside, research analysts clearly believe Hillenbrand is more favorable than Oil-Dri Co. Of America.

Profitability

This table compares Hillenbrand and Oil-Dri Co. Of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hillenbrand 7.52% 19.51% 7.29%
Oil-Dri Co. Of America 2.44% 9.20% 5.53%

Volatility & Risk

Hillenbrand has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Oil-Dri Co. Of America has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Summary

Hillenbrand beats Oil-Dri Co. Of America on 10 of the 15 factors compared between the two stocks.

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.

About Oil-Dri Co. Of America

Oil-Dri Corporation of America develops, manufactures, and markets sorbent products in the United States and internationally. It provides agricultural and horticultural products, including functional granules and powders for crop protection chemical carriers, drying agents, and growing media under the Agsorb, Verge, Flo-Fre, and Terra-Green brand names. The company also offers animal health and nutrition products, such as animal feed pellet binders for the livestock and aquaculture industries under the Amlan, Calibrin, ConditionAde, Pel-Unite, and Pel-Unite Plus brand names; and sports products for use on baseball, softball, football, and soccer fields under the Pro's Choice brand name. In addition, it provides bleaching clay and purification aid products for bleaching, purification, and filtration applications under the Pure-Flo, Perform, Select, and Ultra-Clear brand names; cat litter products, including scoopable and non-clumping litters under the Cat's Pride and Jonny Cat brand names; and industrial and automotive sorbent products from clay, polypropylene, and recycled cotton materials to absorb oil, grease, water, and other types of spills under the Oil-Dri brand name. The company's customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users; processors and refiners of edible oils, petroleum-based oils, and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Oil-Dri Corporation of America was founded in 1941 and is based in Chicago, Illinois.

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