Proto Labs (NYSE: PRLB) and Hillenbrand (NYSE:HI) are both mid-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Earnings & Valuation
This table compares Proto Labs and Hillenbrand’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Proto Labs||$298.05 million||8.73||$42.70 million||$1.75||55.80|
|Hillenbrand||$1.59 billion||1.81||$126.20 million||$1.98||23.01|
Volatility and Risk
Proto Labs has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.
This table compares Proto Labs and Hillenbrand’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Proto Labs and Hillenbrand, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Proto Labs presently has a consensus target price of $68.00, indicating a potential downside of 30.36%. Hillenbrand has a consensus target price of $50.00, indicating a potential upside of 9.77%. Given Hillenbrand’s stronger consensus rating and higher probable upside, analysts clearly believe Hillenbrand is more favorable than Proto Labs.
Insider & Institutional Ownership
76.4% of Hillenbrand shares are held by institutional investors. 7.8% of Proto Labs shares are held by insiders. Comparatively, 1.7% of Hillenbrand shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 1.8%. Proto Labs does not pay a dividend. Hillenbrand pays out 41.4% of its earnings in the form of a dividend. Hillenbrand has raised its dividend for 9 consecutive years.
Hillenbrand beats Proto Labs on 11 of the 17 factors compared between the two stocks.
About Proto Labs
Proto Labs, Inc. is an e-commerce driven digital manufacturer of on-demand three dimensional (3D) printed, computer numerical control (CNC) machined and injection-molded custom parts for prototyping and short-run production. The Company’s geographic segments include the United States, Europe and Japan. The Company targets its products to the product developers and engineers who use 3D computer-aided design (3D CAD) software to design products across a range of end markets. Its product lines include Injection Molding, CNC Machining and 3D Printing. Its Injection Molding product line is used for prototype, on-demand and short-run production. Its CNC Machining product line uses commercially available CNC machines to cut plastic or metal blocks into one or more custom parts based on the 3D CAD model uploaded by the product developer or engineer. Its 3D Printing product line includes stereolithography (SL), selective laser sintering (SLS) and direct metal laser sintering (DMLS) processes.
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.
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