Financial Survey: Hillenbrand (NYSE:HI) versus Siemens (OTCMKTS:SIEGY)

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

Insider & Institutional Ownership

89.1% of Hillenbrand shares are owned by institutional investors. Comparatively, 0.8% of Siemens shares are owned by institutional investors. 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 will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hillenbrand and Siemens, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hillenbrand	0	2	0	0	2.00
Siemens	1	3	0	1	2.20

Hillenbrand currently has a consensus target price of $32.00, indicating a potential upside of 49.46%. Given Hillenbrand’s higher probable upside, analysts clearly believe Hillenbrand is more favorable than Siemens.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hillenbrand	-8.82%	15.03%	4.19%
Siemens	12.61%	13.19%	5.11%

Valuation and Earnings

This table compares Hillenbrand and Siemens”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hillenbrand	$3.05 billion	0.50	-$211.00 million	($3.81)	-5.62
Siemens	$82.35 billion	2.53	$9.00 billion	$6.62	19.66

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

Risk & Volatility

Hillenbrand has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Siemens has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Dividends

Hillenbrand pays an annual dividend of $0.90 per share and has a dividend yield of 4.2%. Siemens pays an annual dividend of $2.00 per share and has a dividend yield of 1.5%. Hillenbrand pays out -23.6% of its earnings in the form of a dividend. Siemens pays out 30.2% 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 18 consecutive years. Hillenbrand is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Siemens beats Hillenbrand on 9 of the 17 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 Siemens

Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS) segments. The Digital Industries segment provides automation systems and software for factories, numerical control systems, servo motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and the Mendix cloud-native low-code application development platform. The Smart Infrastructure segment offers products, systems, solutions, services, and software to support sustainable transition in energy generation from fossil and renewable sources; sustainable buildings and communities; and buildings, electrification, and electrical products. The Mobility segment provides rail passenger and freight transportation, such as vehicles, trams and light rail, and commuter trains, as well as trains and passenger coaches; locomotives and solutions for automated transportation; products and solutions for rail automation; electrification products; maintenance and digital services; and digital and cloud-based solutions, and related services. The Siemens Healthineers segment develops, manufactures, and sells various diagnostic and therapeutic products and services; and provides clinical consulting and training services. The SFS segment offers debt and equity investments; leasing, lending, and working capital, structured, equipment, and project financing; and financial advisory services. Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.