CR Stock: Crane versus Hillenbrand Head to Head Analysis

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Crane (NYSE: CR) and Hillenbrand (NYSE:HI) are both mid-cap multi-sector conglomerates companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Crane pays an annual dividend of $1.32 per share and has a dividend yield of 1.5%. Hillenbrand pays an annual dividend of $0.82 per share and has a dividend yield of 1.8%. Crane pays out 59.2% of its earnings in the form of a dividend. Hillenbrand pays out 41.4% 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. Hillenbrand has increased its dividend for 9 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 Crane and Hillenbrand’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crane $2.75 billion 1.86 $122.80 million $2.23 38.57
Hillenbrand $1.59 billion 1.81 $126.20 million $1.98 23.01

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

Profitability

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

Net Margins Return on Equity Return on Assets
Crane 4.96% 20.70% 7.53%
Hillenbrand 7.94% 19.26% 7.02%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Crane and Hillenbrand, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crane 0 4 7 0 2.64
Hillenbrand 0 2 2 0 2.50

Crane presently has a consensus target price of $94.60, indicating a potential upside of 10.00%. Hillenbrand has a consensus target price of $50.00, indicating a potential upside of 9.77%. Given Crane’s stronger consensus rating and higher probable upside, research analysts plainly believe Crane is more favorable than Hillenbrand.

Institutional & Insider Ownership

68.4% of Crane shares are owned by institutional investors. Comparatively, 76.4% of Hillenbrand shares are owned by institutional investors. 3.1% of Crane 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.

Risk and Volatility

Crane has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Summary

Crane beats Hillenbrand on 9 of the 17 factors compared between the two stocks.

Crane Company Profile

Crane Co. (Crane) is a manufacturer of engineered industrial products. The Company operates through four segments, including Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. The Fluid Handling segment is a provider of engineered fluid handling equipment, including Process Valves and Related Products, Commercial Valves and Other Products. The Payment & Merchandising Technologies segment includes Crane Payment Innovations (CPI) and Merchandising Systems. The Aerospace & Electronics segment supplies various components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace, and defense markets. The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings.

Hillenbrand Company Profile

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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