Analyzing Hillenbrand (HI) & Rexnord Corporation (RXN)

Hillenbrand (NYSE: HI) and Rexnord Corporation (NYSE:RXN) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hillenbrand 0 2 1 0 2.33
Rexnord Corporation 0 1 3 0 2.75

Rexnord Corporation has a consensus price target of $26.00, suggesting a potential upside of 1.88%. Given Rexnord Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Rexnord Corporation is more favorable than Hillenbrand.

Volatility and Risk

Hillenbrand has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Rexnord Corporation has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Profitability

This table compares Hillenbrand and Rexnord Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hillenbrand 7.87% 19.72% 6.87%
Rexnord Corporation 4.22% 14.27% 3.95%

Insider and Institutional Ownership

75.6% of Hillenbrand shares are held by institutional investors. 1.7% of Hillenbrand shares are held by company insiders. Comparatively, 3.5% of Rexnord Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 2.1%. Rexnord Corporation does not pay a dividend. Hillenbrand pays out 42.3% of its earnings in the form of a dividend. Rexnord Corporation has raised its dividend for 9 consecutive years.

Earnings & Valuation

This table compares Hillenbrand and Rexnord Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hillenbrand $1.58 billion 1.58 $278.20 million $1.94 20.39
Rexnord Corporation $1.93 billion 1.37 $327.90 million $0.67 38.09

Rexnord Corporation has higher revenue and earnings than Hillenbrand. Hillenbrand is trading at a lower price-to-earnings ratio than Rexnord Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Rexnord Corporation beats Hillenbrand on 10 of the 17 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 Rexnord Corporation

Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.

What are top analysts saying about Hillenbrand Inc? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Hillenbrand Inc and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit