Contrasting CLARCOR (CLC) and Hillenbrand (HI)

CLARCOR (NYSE: CLC) and Hillenbrand (NYSE:HI) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
CLARCOR 7.71% 10.16% 6.66%
Hillenbrand 7.87% 19.72% 6.87%

Dividends

CLARCOR pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 2.3%. CLARCOR pays out 35.2% of its earnings in the form of a dividend. Hillenbrand pays out 42.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CLARCOR has increased its dividend for 9 consecutive years and Hillenbrand has increased its dividend for 52 consecutive years. Hillenbrand is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares CLARCOR and Hillenbrand’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CLARCOR N/A N/A N/A $2.84 29.23
Hillenbrand $1.58 billion 1.41 $278.20 million $1.94 18.20

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

Risk & Volatility

CLARCOR has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Insider & Institutional Ownership

86.9% of CLARCOR shares are owned by institutional investors. Comparatively, 79.1% of Hillenbrand shares are owned by institutional investors. 3.0% of CLARCOR shares are owned by company insiders. Comparatively, 1.7% of Hillenbrand shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for CLARCOR and Hillenbrand, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CLARCOR 1 2 0 0 1.67
Hillenbrand 0 1 1 0 2.50

CLARCOR currently has a consensus price target of $73.50, suggesting a potential downside of 11.45%. Given CLARCOR’s higher possible upside, research analysts clearly believe CLARCOR is more favorable than Hillenbrand.

Summary

Hillenbrand beats CLARCOR on 9 of the 14 factors compared between the two stocks.

About CLARCOR

CLARCOR Inc. is engaged in providing filtration products, filtration systems and services, and consumer and industrial packaging products. The Company’s segments are Engine/Mobile Filtration and Industrial/Environmental Filtration. Its Engine/Mobile Filtration segment manufactures and sells filtration products for on-road and off-road mobile and stationary applications. Its Industrial/Environmental Filtration segment manufactures and sells filtration products used in industrial and commercial processes, and in buildings and infrastructures of various types. Its liquid process filtration products include specialty industrial process liquid filters; filters for pharmaceutical processes and beverages; filtration systems, filters and coalescers for the oil and natural gas industry; filtration systems for aircraft refueling, anti-pollution, sewage treatment and water recycling; bilge water separators, and sand control filters for oil and gas drilling.

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.

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