Critical Comparison: Hillenbrand (HI) & Jason Industries (JASN)

Hillenbrand (NYSE: HI) and Jason Industries (NASDAQ:JASN) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Hillenbrand and Jason Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hillenbrand 0 1 2 0 2.67
Jason Industries 0 0 1 0 3.00

Hillenbrand currently has a consensus price target of $53.00, indicating a potential upside of 11.23%. Jason Industries has a consensus price target of $4.50, indicating a potential upside of 56.79%. Given Jason Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Jason Industries is more favorable than Hillenbrand.

Insider & Institutional Ownership

77.2% of Hillenbrand shares are owned by institutional investors. Comparatively, 36.7% of Jason Industries shares are owned by institutional investors. 1.8% of Hillenbrand shares are owned by company insiders. Comparatively, 19.2% of Jason Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Hillenbrand has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Jason Industries has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hillenbrand and Jason Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hillenbrand $1.59 billion 1.87 $126.20 million $2.11 22.58
Jason Industries $648.62 million 0.12 -$4.47 million $0.01 287.00

Hillenbrand has higher revenue and earnings than Jason Industries. Hillenbrand is trading at a lower price-to-earnings ratio than Jason Industries, 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 1.7%. Jason Industries 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.

Profitability

This table compares Hillenbrand and Jason Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hillenbrand 3.99% 20.08% 7.56%
Jason Industries -0.55% -2.60% 0.19%

Summary

Hillenbrand beats Jason Industries on 12 of the 17 factors compared between the two stocks.

Hillenbrand Company Profile

Hillenbrand, Inc. operates as a diversified industrial company worldwide. The company operates in two segments, Process Equipment Group and Batesville. The Process Equipment Group segment designs, engineers, manufactures, markets, and services process and material handling equipment and systems for various industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals and mining, energy, wastewater treatment, and forest products. It provides compounding equipment comprising twin screw compounding and extrusion machines under the Coperion brand; and material handling equipment, such as pneumatic and hydraulic conveying equipment, high-precision feeders, and blenders, as well as rotary, diverter, and slide gate valves under the Coperion and Coperion K-Tron brand names. This segment also offers size reduction equipment under the Pennsylvania Crusher, Gundlach, and Jeffrey Rader brands; screening and separating equipment under the Rotex brand name; piston and piston diaphragm pump technology under the ABEL brand; pinch and duckbill check valves under the Red Valve, Tideflex Technologies, and RKL Controls brand names; and replacement parts and services. In addition, it sells equipment and systems to customers directly, as well as through a network of independent sales representatives and distributors. The Batesville segment designs, manufactures, distributes, and sells funeral services products and solutions, such as burial caskets; cremation caskets, and urns; selection room display fixtures for funeral homes; personalization and memorialization products and services; and Web-based applications consisting of funeral planning, Website products, and back office software for licensed funeral homes to licensed funeral professionals operating licensed funeral establishments. This segment develops and markets operational management software solutions for cemeteries. The company was founded in 2007 and is headquartered in Batesville, Indiana.

Jason Industries Company Profile

Jason Industries is the parent company to a global family of manufacturing leaders within the seating, finishing, components and automotive acoustics markets, including Assembled Products (Buffalo Grove, Ill.), Janesville Acoustics (Southfield, Mich.), Metalex (Libertyville, Ill.), Milsco (Milwaukee, Wis.), Osborn (Richmond, Indiana and Burgwald, Germany) and Sealeze (Richmond, Va.). All Jason companies utilize the Jason Business System, a collaborative manufacturing strategy applicable to a diverse group of companies that includes business principles and processes to ensure best-in-class results and collective strength. Headquartered in Milwaukee, Wis., Jason employs more than 4,000 individuals in 15 countries.

Receive News & Ratings for Hillenbrand Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hillenbrand and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply