Hillenbrand (NYSE:HI) and Soitec (OTCMKTS:SLOIF) are both mid-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Risk and Volatility
Hillenbrand has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Soitec has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500.
Institutional and Insider Ownership
77.9% of Hillenbrand shares are held by institutional investors. 3.4% of Hillenbrand shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Hillenbrand pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. Soitec does not pay a dividend. Hillenbrand pays out 34.6% of its earnings in the form of a dividend. Hillenbrand has raised its dividend for 11 consecutive years.
This is a breakdown of current ratings and price targets for Hillenbrand and Soitec, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hillenbrand presently has a consensus target price of $59.50, indicating a potential upside of 39.61%. Given Hillenbrand’s higher possible upside, analysts clearly believe Hillenbrand is more favorable than Soitec.
Valuation and Earnings
This table compares Hillenbrand and Soitec’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hillenbrand||$1.77 billion||1.51||$76.60 million||$2.43||17.54|
Hillenbrand has higher revenue and earnings than Soitec.
This table compares Hillenbrand and Soitec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hillenbrand beats Soitec on 10 of the 12 factors compared between the two stocks.
Hillenbrand Company Profile
Hillenbrand, Inc. operates as a diversified industrial company in the United States and internationally. 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, forest products, and other general industrials. It provides 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. 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, containers and urns, other personalization and memorialization products, and Web-based technology applications to licensed funeral professionals operating licensed funeral establishments. Hillenbrand, Inc. was founded in 2007 and is headquartered in Batesville, Indiana.
Soitec Company Profile
Soitec S.A. designs and produces semiconductor materials worldwide. It offers silicon-on-insulator (SOI) wafers for processor and connectivity system on chips (SoCs), including partially-depleted SOI, fully-depleted SOI, and FinFET products. The company also provides SOIs for RF front-end modules, including RFeSI-enhanced signal integrity substrates, HR-SOI substrates, and stacking for RF substrates. In addition, it offers SOI wafers for manufacturing smart power ICs; and photonics-SOIs for high-speed optical transceivers in data centers. The company's products are used to manufacture chips for consumer electronics devices and mobile electronics in smartphones, automotive applications, the Internet of Things, datacenters, etc. The company has a strategic collaboration with Samsung Electronics Co., Ltd. for the supply of silicon-on-insulator wafers; and strategic partnership with Shanghai Simgui Technology Co., Ltd. to deliver RF-SOI and Power-SOI products. Soitec S.A. was founded in 1992 and is headquartered in Bernin, France.
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