Sigma Labs (NASDAQ:SGLB) and Hillenbrand (NYSE:HI) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
3.3% of Sigma Labs shares are owned by institutional investors. Comparatively, 76.3% of Hillenbrand shares are owned by institutional investors. 9.6% of Sigma Labs shares are owned by company insiders. Comparatively, 1.8% 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.
Hillenbrand pays an annual dividend of $0.84 per share and has a dividend yield of 2.2%. Sigma Labs does not pay a dividend. Hillenbrand pays out 34.6% of its earnings in the form of a dividend. Hillenbrand has increased its dividend for 10 consecutive years.
This is a breakdown of current ratings for Sigma Labs and Hillenbrand, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hillenbrand has a consensus price target of $59.50, suggesting a potential upside of 52.52%. Given Hillenbrand’s higher possible upside, analysts clearly believe Hillenbrand is more favorable than Sigma Labs.
Risk & Volatility
Sigma Labs has a beta of -1.6, meaning that its share price is 260% less volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
This table compares Sigma Labs and Hillenbrand’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Sigma Labs and Hillenbrand’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sigma Labs||$640,000.00||20.12||-$4.57 million||($1.04)||-1.42|
|Hillenbrand||$1.77 billion||1.37||$76.60 million||$2.43||16.05|
Hillenbrand has higher revenue and earnings than Sigma Labs. Sigma Labs is trading at a lower price-to-earnings ratio than Hillenbrand, indicating that it is currently the more affordable of the two stocks.
Hillenbrand beats Sigma Labs on 11 of the 15 factors compared between the two stocks.
About Sigma Labs
Sigma Labs, Inc. develops and commercializes manufacturing and materials technologies. It offers PrintRite3D quality assurance software apps primarily for 3D printing and additive manufacturing industries. The company's products are used in advanced manufacturing technologies to assure part quality in real time as the part is being made and enhance process control practices. It also provides engineering consulting services for developing next-generation technologies in advanced manufacturing technologies. The company serves aerospace and defense manufacturing, energy and power generation, bio-medical manufacturing, automotive manufacturing, and firearms and recreational equipment industries. Sigma Labs, Inc. was founded in 2010 and is based in Santa Fe, New Mexico.
Hillenbrand, Inc. operates as a diversified industrial company in the United States and internationally. The company operates in two segments, Process Equipment Group and Batesville. The Process Equipment Group segment designs, engineers, manufactures, markets, and services process and material handling equipment and systems for various industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals and mining, energy, wastewater treatment, forest products, and other general industrials. It provides twin screw compounding and extrusion machines under the Coperion brand; and material handling equipment, such as pneumatic and hydraulic conveying equipment, high-precision feeders, and blenders, as well as rotary, diverter, and slide gate valves under the Coperion and Coperion K-Tron brand names. This segment also offers size reduction equipment under the Pennsylvania Crusher, Gundlach, and Jeffrey Rader brands; screening and separating equipment under the Rotex brand name; piston and piston diaphragm pump technology under the ABEL brand; pinch and duckbill check valves under the Red Valve, Tideflex Technologies, and RKL Controls brand names; and replacement parts and services. It sells equipment and systems to customers directly, as well as through a network of independent sales representatives and distributors. The Batesville segment designs, manufactures, distributes, and sells funeral services products and solutions, such as burial caskets, cremation caskets, containers and urns, other personalization and memorialization products, and Web-based technology applications to licensed funeral professionals operating licensed funeral establishments. Hillenbrand, Inc. was founded in 2007 and is headquartered in Batesville, Indiana.
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