Critical Review: Hillenbrand (NYSE:HI) versus Presidio Property Trust (NASDAQ:SQFT)

Hillenbrand (NYSE:HI) and Presidio Property Trust (NASDAQ:SQFT) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Hillenbrand and Presidio Property Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hillenbrand	0	2	0	1	2.67
Presidio Property Trust	0	0	0	0	0.00

Hillenbrand presently has a consensus target price of $32.00, indicating a potential upside of 29.50%. Given Hillenbrand’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Hillenbrand is more favorable than Presidio Property Trust.

Valuation & Earnings

This table compares Hillenbrand and Presidio Property Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hillenbrand	$3.18 billion	0.55	-$211.00 million	($0.25)	-98.84
Presidio Property Trust	$18.92 million	0.47	-$25.63 million	($11.63)	-0.52

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

Profitability

This table compares Hillenbrand and Presidio Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hillenbrand	-0.63%	13.53%	3.82%
Presidio Property Trust	-63.99%	-21.64%	-5.45%

Insider & Institutional Ownership

89.1% of Hillenbrand shares are owned by institutional investors. Comparatively, 38.9% of Presidio Property Trust shares are owned by institutional investors. 2.0% of Hillenbrand shares are owned by insiders. Comparatively, 24.0% of Presidio Property Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Hillenbrand has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Presidio Property Trust has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

Hillenbrand beats Presidio Property Trust on 11 of the 14 factors compared between the two stocks.

About Hillenbrand

Hillenbrand, Inc. operates as an industrial company in the United States and internationally. The company operates through two segments, Advanced Process Solutions and Molding Technology Solutions. The Advanced Process Solutions segment designs, engineers, manufactures, markets, and services process and material handling equipment and systems comprising compounding, extrusion, and material handling equipment, equipment system design services, as well as offers mixing technology, ingredient automation, and portion process; and provides screening and separating equipment for various industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals, energy, wastewater treatment, forest products, and other general industrials. The Molding Technology Solutions segment offers injection molding and extrusion equipment; hot runner systems; process control systems; mold bases and components; maintenance and repair services; and aftermarket parts and service for various industries, including automotive, consumer goods, medical, packaging, construction, and electronics. The company was founded in 1906 and is headquartered in Batesville, Indiana.

About Presidio Property Trust

Presidio Property Trust, Inc. (we, our, us or the Company) is an internally-managed real estate investment trust (REIT), with holdings in office, industrial, retail and model home properties. We were incorporated in the State of California on September 28, 1999, and in August 2010, we reincorporated as a Maryland corporation. In October 2017, we changed our name from NetREIT, Inc., to Presidio Property Trust, Inc. Through Presidio Property Trust, Inc., its subsidiaries, and its partnerships, we own 12 commercial properties in fee interest, two of which we own as a partial interest in various affiliates, in which we serve as general partner, member and/or manager, and a special purpose acquisition company (until deconsolidation in September 2023). The Company has determined that the limited partnerships in which it owns less than 100% should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of such limited partnerships.