Hudson Technologies (NASDAQ:HDSN – Get Free Report) and Hillenbrand (NYSE:HI – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Volatility and Risk
Hudson Technologies has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Institutional & Insider Ownership
71.3% of Hudson Technologies shares are owned by institutional investors. Comparatively, 89.1% of Hillenbrand shares are owned by institutional investors. 8.0% of Hudson Technologies shares are owned by insiders. Comparatively, 2.0% of Hillenbrand shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hudson Technologies | 0 | 4 | 3 | 0 | 2.43 |
| Hillenbrand | 0 | 4 | 0 | 0 | 2.00 |
Hudson Technologies currently has a consensus target price of $8.63, indicating a potential downside of 1.99%. Hillenbrand has a consensus target price of $32.00, indicating a potential upside of 30.29%. Given Hillenbrand’s higher probable upside, analysts clearly believe Hillenbrand is more favorable than Hudson Technologies.
Valuation & Earnings
This table compares Hudson Technologies and Hillenbrand”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hudson Technologies | $224.78 million | 1.71 | $24.39 million | $0.40 | 22.00 |
| Hillenbrand | $3.18 billion | 0.54 | -$211.00 million | ($0.25) | -98.24 |
Hudson Technologies has higher earnings, but lower revenue than Hillenbrand. Hillenbrand is trading at a lower price-to-earnings ratio than Hudson Technologies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hudson Technologies and Hillenbrand’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hudson Technologies | 8.08% | 7.26% | 5.87% |
| Hillenbrand | -0.63% | 13.53% | 3.82% |
Summary
Hudson Technologies beats Hillenbrand on 9 of the 14 factors compared between the two stocks.
About Hudson Technologies
Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, engages in the provision of solutions to recurring problems within the refrigeration industry in the United States. The company engages in the sale of refrigerant and industrial gas; provision of refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination and recovery to remove moisture, oils, and other contaminants. It also offers Chiller Chemistry, which integrates several fluid tests of an operating system and the corresponding laboratory results into an engineering report; Fluid Chemistry, an abbreviated version of Chiller Chemistry, which is designed to quickly identify systems that require further examination; SmartEnergy OPS, a web-based real time continuous monitoring system, for measuring, modifying and improving the efficiency of energy systems, including air conditioning and refrigeration systems, in industrial and commercial applications; and ChillSmart, which combines the system optimization with Chiller Chemistry for providing a snapshot of a packaged chiller's operating efficiency and health. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. The company was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.
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.
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