Hutchinson Technology (HTCH) versus Mueller Industries (MLI) Head to Head Analysis

Hutchinson Technology (NASDAQ: HTCH) and Mueller Industries (NYSE:MLI) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Hutchinson Technology and Mueller Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hutchinson Technology 0 0 0 0 N/A
Mueller Industries 0 0 0 0 N/A

Volatility & Risk

Hutchinson Technology has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Mueller Industries has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Dividends

Mueller Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Hutchinson Technology does not pay a dividend. Mueller Industries pays out 22.9% of its earnings in the form of a dividend. Mueller Industries has increased its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Hutchinson Technology and Mueller Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hutchinson Technology N/A N/A N/A ($0.92) -4.33
Mueller Industries $2.17 billion 0.79 $199.46 million $1.75 16.94

Mueller Industries has higher revenue and earnings than Hutchinson Technology. Hutchinson Technology is trading at a lower price-to-earnings ratio than Mueller Industries, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

31.6% of Hutchinson Technology shares are held by institutional investors. Comparatively, 90.3% of Mueller Industries shares are held by institutional investors. 7.6% of Hutchinson Technology shares are held by insiders. Comparatively, 2.8% of Mueller Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Hutchinson Technology and Mueller Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hutchinson Technology -12.87% -50.69% -12.38%
Mueller Industries 4.65% 13.99% 7.37%

Summary

Mueller Industries beats Hutchinson Technology on 9 of the 11 factors compared between the two stocks.

Hutchinson Technology Company Profile

Hutchinson Technology Incorporated is a global supplier of critical precision component technologies. The Company is engaged in manufacturing suspension assemblies for all sizes and types of hard disk drives. Suspension assemblies are components of disk drives that hold the read/write heads in position above the spinning magnetic disks. It manufactures its suspension assemblies with technology and processes with low part-to-part variation. The Company categorizes its products as either suspension assemblies or other revenue, which consists primarily of revenue outside of the disk drive industry for precision component manufacturing, tool design, tool build and metrology, suspension assembly components, reimbursement for disk drive industry-related engineering services and specific disk drive program capacity, and biomeasurement products. It sells its suspension assemblies to original equipment manufacturers.

Mueller Industries Company Profile

Mueller Industries, Inc. is a manufacturer of copper, brass, aluminum and plastic products. The Company operates through three segments: Piping Systems, Industrial Metals and Climate. The Company’s products include copper tube and fittings; line sets; brass and copper alloy rod, bar, and shapes; aluminum and brass forgings; aluminum impact extrusions; plastic fittings and valves; refrigeration valves and fittings; fabricated tubular products, and steel nipples. The Company also resells imported brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. The Company’s operations are located throughout the United States and in Canada, Mexico, Great Britain, South Korea, and China. The Company markets its products to the heating, ventilation, and air-conditioning (HVAC), plumbing, refrigeration, hardware, and other industries.

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