Critical Review: Hamilton Beach Brands (HBB) and Deer Consumer Products (DEER)

Hamilton Beach Brands (NYSE:HBB) and Deer Consumer Products (OTCMKTS:DEER) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Hamilton Beach Brands and Deer Consumer Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hamilton Beach Brands 0 0 0 0 N/A
Deer Consumer Products 0 0 0 0 N/A

Dividends

Hamilton Beach Brands pays an annual dividend of $0.34 per share and has a dividend yield of 1.5%. Deer Consumer Products does not pay a dividend. Hamilton Beach Brands pays out 20.6% of its earnings in the form of a dividend.

Profitability

This table compares Hamilton Beach Brands and Deer Consumer Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hamilton Beach Brands 2.67% 51.86% 7.49%
Deer Consumer Products N/A N/A N/A

Volatility & Risk

Hamilton Beach Brands has a beta of -0.47, meaning that its share price is 147% less volatile than the S&P 500. Comparatively, Deer Consumer Products has a beta of 15.61, meaning that its share price is 1,461% more volatile than the S&P 500.

Earnings & Valuation

This table compares Hamilton Beach Brands and Deer Consumer Products’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hamilton Beach Brands $740.75 million 0.43 $17.90 million $1.65 14.10
Deer Consumer Products N/A N/A N/A N/A N/A

Hamilton Beach Brands has higher revenue and earnings than Deer Consumer Products.

Institutional & Insider Ownership

39.2% of Hamilton Beach Brands shares are held by institutional investors. 32.7% of Hamilton Beach Brands shares are held by company insiders. Comparatively, 30.2% of Deer Consumer Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Hamilton Beach Brands beats Deer Consumer Products on 7 of the 9 factors compared between the two stocks.

About Hamilton Beach Brands

Hamilton Beach Brands Holding Company, together with its subsidiaries, operates in the consumer, commercial, specialty small appliance, and specialty retail market in the United States and internationally. It designs, markets, and distributes a range of small branded electric household and specialty housewares small appliances, including blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters, and toaster ovens, as well as commercial products for restaurants, bars, and hotels under the under the Hamilton Beach, Proctor Silex brand names. The company also offers counter top appliances and kitchen tools under the Wolf Gourmet brand; garment-care line products under CHI brand name; and game and garden food processing equipment, such as meat grinders, bag sealers, dehydrators, and meat slicers under the Weston brand, as well as several private-label brand names. It sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety and drug store chains, specialty home retailers, distributors, and other retail outlets. In addition, the company operates as a specialty retailer of kitchenware in outlet and traditional malls throughout the United States. As of December 31, 2017, it operated 210 stores. The company is based in Glen Allen, Virginia. As of September 29, 2017, Hamilton Beach Brands Holding Company operates as a subsidiary of NACCO Industries, Inc.

About Deer Consumer Products

Deer Consumer Products, Inc., through its subsidiaries, engages in the design, manufacture, and sale of small home and kitchen electronic appliances. It offers blenders, juicers, soy milk makers, food processors, popcorn makers, meat grinders, coffee machines, and hot water kettles primarily under the Deer brand name, as well as under one store brand for retailer's private label programs. Deer Consumer Products also offers humidifiers and dehumidifiers, rice cookers, and toasters. The company sells its products to consumer product companies internationally; and to retail stores through agents in the People's Republic of China. It also operates as an original design manufacturer and original equipment manufacturer. The company was formerly known as Tag Events Corp. and changed its name to Deer Consumer Products, Inc. in September 2008. Deer Consumer Products, Inc. is based in Shenzhen, the People's Republic of China.

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