Hillenbrand (NYSE: HI) and Daktronics (NASDAQ:DAKT) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Volatility and Risk
Hillenbrand has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Daktronics has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
78.2% of Hillenbrand shares are owned by institutional investors. Comparatively, 56.2% of Daktronics shares are owned by institutional investors. 1.8% of Hillenbrand shares are owned by company insiders. Comparatively, 8.2% of Daktronics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for Hillenbrand and Daktronics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hillenbrand currently has a consensus price target of $53.00, indicating a potential upside of 10.53%. Daktronics has a consensus price target of $10.00, indicating a potential upside of 9.65%. Given Hillenbrand’s stronger consensus rating and higher probable upside, research analysts clearly believe Hillenbrand is more favorable than Daktronics.
This table compares Hillenbrand and Daktronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hillenbrand pays an annual dividend of $0.83 per share and has a dividend yield of 1.7%. Daktronics pays an annual dividend of $0.28 per share and has a dividend yield of 3.1%. Hillenbrand pays out 39.3% of its earnings in the form of a dividend. Daktronics pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hillenbrand has raised its dividend for 10 consecutive years.
Valuation and Earnings
This table compares Hillenbrand and Daktronics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hillenbrand||$1.59 billion||1.90||$126.20 million||$2.11||22.73|
|Daktronics||$586.54 million||0.69||$10.34 million||$0.23||39.65|
Hillenbrand has higher revenue and earnings than Daktronics. Hillenbrand is trading at a lower price-to-earnings ratio than Daktronics, indicating that it is currently the more affordable of the two stocks.
Hillenbrand beats Daktronics on 14 of the 17 factors compared between the two stocks.
Hillenbrand Company Profile
Hillenbrand, Inc. operates as a diversified industrial company worldwide. 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, and forest products. It provides compounding equipment comprising 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. In addition, 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, and urns; selection room display fixtures for funeral homes; personalization and memorialization products and services; and Web-based applications consisting of funeral planning, Website products, and back office software for licensed funeral homes to licensed funeral professionals operating licensed funeral establishments. This segment develops and markets operational management software solutions for cemeteries. The company was founded in 2007 and is headquartered in Batesville, Indiana.
Daktronics Company Profile
Daktronics, Inc. designs, manufactures, and sells a range of electronic display systems and related products worldwide. It operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company offers video display systems, such as displays to show various levels of video, graphics, and animation, as well as controllers; LED ribbon board displays; mobile and modular display systems; freeform LED displays, which include architectural lighting and display products; indoor and outdoor scoreboards for various sports, digit displays, scoring and timing controllers, statistics software, and other related products; and timing systems for sports events primarily aquatics and track competitions, as well as swimming touchpads, race start systems, and relay take-off platforms. It also provides message displays; ITS dynamic message signs, including LED displays for road management, mass transit, and aviation applications; digit and directional displays for use in parking facilities; and audio systems for outdoor sports venues. In addition, the company offers digital billboards and street furniture displays used to display static images, which change at regular intervals for the out-of-home (OOH) advertising industry; Visiconn system and Venus Control Suite, a software application for controlling content and playback loops for digital billboard applications; and street furniture comprising advertising light boxes for digital OOH campaigns. Further, it provides digit and price displays, such as outdoor time and temperature displays, as well as Fuelight digit displays for the petroleum industry; and dynamic messaging systems for retailers, convenience stores, and other businesses, as well as maintenance and professional services related to its products. The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is based in Brookings, South Dakota.
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