Head-To-Head Survey: ScanSource (NASDAQ:SCSC) & Hillenbrand (NYSE:HI)

ScanSource (NASDAQ:SCSC) and Hillenbrand (NYSE:HI) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for ScanSource and Hillenbrand, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ScanSource	0	3	1	0	2.25
Hillenbrand	0	5	0	0	2.00

ScanSource presently has a consensus price target of $42.50, indicating a potential upside of 2.48%. Hillenbrand has a consensus price target of $34.67, indicating a potential upside of 9.48%. Given Hillenbrand’s higher probable upside, analysts clearly believe Hillenbrand is more favorable than ScanSource.

Valuation & Earnings

This table compares ScanSource and Hillenbrand”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ScanSource	$3.00 billion	0.30	$71.55 million	$3.21	12.92
Hillenbrand	$2.86 billion	0.78	-$211.00 million	($0.25)	-126.66

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

Risk and Volatility

ScanSource has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Hillenbrand has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Institutional and Insider Ownership

97.9% of ScanSource shares are owned by institutional investors. Comparatively, 89.1% of Hillenbrand shares are owned by institutional investors. 3.2% of ScanSource 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ScanSource	2.35%	9.38%	4.87%
Hillenbrand	-0.63%	13.53%	3.82%

Summary

ScanSource beats Hillenbrand on 10 of the 14 factors compared between the two stocks.

About ScanSource

ScanSource, Inc. engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies. This segment offers data capture and POS solutions to automate the collection, processing, and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications. It also provides electronic physical security products, such as identification, access control, video surveillance, and intrusion-related devices; networking products comprising wireless and networking infrastructure products; other software-as-a-service (SaaS) products; and engages in hardware rental activities. The Modern Communications & Cloud segment offers a portfolio of solutions primarily for communications technologies and services comprising voice, video conferencing, wireless, data networking, cybersecurity, cable, unified communications and collaboration, cloud, and technology services, as well as IP networks and other solutions for various vertical markets, such as education, healthcare, and government. The company serves manufacturing, warehouse and distribution, retail and e-commerce, hospitality, transportation and logistics, government, education and healthcare, and other industries. ScanSource, Inc. was incorporated in 1992 and is headquartered in Greenville, South Carolina.

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.