Head to Head Contrast: Hillenbrand (NYSE:HI) & HRG Group (HRG)

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

Profitability

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

Net Margins Return on Equity Return on Assets
HRG Group 8.94% -6.02% -0.37%
Hillenbrand 7.52% 19.51% 7.29%

Earnings & Valuation

This table compares HRG Group and Hillenbrand’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HRG Group $5.01 billion 0.63 $106.00 million N/A N/A
Hillenbrand $1.59 billion 1.79 $126.20 million $2.11 21.45

Hillenbrand has lower revenue, but higher earnings than HRG Group.

Dividends

Hillenbrand pays an annual dividend of $0.83 per share and has a dividend yield of 1.8%. HRG Group does not pay a dividend. Hillenbrand pays out 39.3% of its earnings in the form of a dividend. Hillenbrand has raised its dividend for 10 consecutive years.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HRG Group 0 0 0 0 N/A
Hillenbrand 0 1 2 0 2.67

Hillenbrand has a consensus target price of $53.00, suggesting a potential upside of 17.13%. Given Hillenbrand’s higher probable upside, analysts clearly believe Hillenbrand is more favorable than HRG Group.

Volatility and Risk

HRG Group has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Insider & Institutional Ownership

95.5% of HRG Group shares are owned by institutional investors. Comparatively, 78.1% of Hillenbrand shares are owned by institutional investors. 1.2% of HRG Group shares are owned by insiders. Comparatively, 1.8% of Hillenbrand shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Hillenbrand beats HRG Group on 9 of the 14 factors compared between the two stocks.

About HRG Group

HRG Group, Inc., through its subsidiaries, provides various branded consumer products. It operates through two segments, Consumer Products; and Corporate and Other. Its product portfolio includes consumer batteries, such as alkaline and zinc carbon batteries, nickel metal hydride rechargeable batteries, battery chargers, battery-powered portable lighting products, hearing aid batteries, and other specialty battery products; small appliances comprising small kitchen appliances and home product appliances; and personal care products, such as electric shaving and grooming products, hair care appliances, and accessories. The company's product portfolio also comprises hardware and home improvement products, including residential locksets, door hardware, and plumbing products; pet supplies consisting of aquatics, companion animals, and pet food products; home and garden improvement products, such as outdoor insect and weed control solutions, animal repellents, household pest control solutions, and personal use pesticides for protection from various outdoor nuisance pests; and auto care products, including fuel and oil additives, functional fluids and automotive appearance products, do-it-yourself automotive air conditioner recharge products, and performance chemicals, as well as other refrigerant and oil recharge kits, sealants, and accessories. The company sells its products through retailers, wholesalers and distributors, construction companies, hearing aid professionals, industrial distributors, and original equipment manufacturers in approximately 160 countries in North America, Europe, the Middle East, Africa, Latin America, and the Asia-Pacific. The company was formerly known as Harbinger Group Inc. and changed its name to HRG Group, Inc. in March 2015. HRG Group, Inc. was founded in 1954 and is headquartered in New York, New York.

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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