Critical Review: HNI (NYSE:HNI) and Eshallgo (NASDAQ:EHGO)

HNI (NYSE:HNI) and Eshallgo (NASDAQ:EHGO) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

75.3% of HNI shares are held by institutional investors. 3.4% of HNI shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares HNI and Eshallgo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HNI	5.35%	18.48%	7.99%
Eshallgo	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for HNI and Eshallgo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HNI	0	1	2	0	2.67
Eshallgo	0	0	0	0	0.00

HNI currently has a consensus price target of $71.00, suggesting a potential upside of 36.28%. Given HNI’s stronger consensus rating and higher possible upside, research analysts clearly believe HNI is more favorable than Eshallgo.

Earnings & Valuation

This table compares HNI and Eshallgo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HNI	$2.54 billion	0.96	$139.50 million	$2.81	18.54
Eshallgo	$16.96 million	1.05	$10,000.00	N/A	N/A

HNI has higher revenue and earnings than Eshallgo.

Summary

HNI beats Eshallgo on 10 of the 11 factors compared between the two stocks.

About HNI

HNI Corporation, together with its subsidiaries, engages in the manufacture, sale, and marketing of workplace furnishings and residential building products primarily in the United States and Canada. The company operates through two segments, Workplace Furnishings and Residential Building Products. The Workplace Furnishings segment offers a range of commercial and home office furniture, including panel-based and freestanding furniture systems, seating, storage, benching, tables, architectural products, and ancillary and hospitality products, as well as social collaborative items under the HON, Allsteel, Beyond, Gunlocke, HBF, HBF Textiles, HNI India, Kimball, National, Etc., Interwoven, David Edward, Kimball Hospitality, and D'style brands. This segment sells its products through independent office products dealers, wholesalers, office product distributors, e-commerce focused resellers, and wholesalers, as well as directly to end-user customers and governments. The Residential Building Products segment provides various gas, wood, electric, and pellet-fueled prefabricated fireplaces; and inserts, hearth stoves, facings, outdoor fire pits and fire tables, and accessories. This segment sells its products primarily for home use under the Heatilator, Heat & Glo, Majestic, Monessen, Quadra-Fire, Harman, Vermont Castings, PelPro, Stellar, SimpliFire, The Outdoor GreatRoom Company, and Forge & Flame brand names through independent dealers and distributors, and corporation-owned distribution and retail outlets. The company was incorporated in 1944 and is headquartered in Muscatine, Iowa.

About Eshallgo

Eshallgo Inc., through its subsidiaries, engages in the sale and leasing of office equipment and after-sale maintenance and repair services in the People’s Republic of China. The company also sells office furniture, IT products, water dispensers, printing papers, and other products, as well as provides maintenance services with enterprise resource planning systems. It serves private and public sector businesses, as well as large enterprises and institutions. The company was founded in 2015 and is based in Shanghai, China.