Financial Survey: CSW Industrials (NYSE:CSW) versus Western Asset High Income Fund II (NYSE:HIX)

CSW Industrials (NYSE:CSW) and Western Asset High Income Fund II (NYSE:HIX) are both financial services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares CSW Industrials and Western Asset High Income Fund II’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSW Industrials	14.88%	14.74%	11.10%
Western Asset High Income Fund II	N/A	N/A	N/A

Valuation and Earnings

This table compares CSW Industrials and Western Asset High Income Fund II”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSW Industrials	$878.30 million	6.02	$136.65 million	$8.52	37.20
Western Asset High Income Fund II	$32.72 million	N/A	N/A	N/A	N/A

CSW Industrials has higher revenue and earnings than Western Asset High Income Fund II.

Dividends

CSW Industrials pays an annual dividend of $1.08 per share and has a dividend yield of 0.3%. Western Asset High Income Fund II pays an annual dividend of $0.58 per share and has a dividend yield of 14.1%. CSW Industrials pays out 12.7% of its earnings in the form of a dividend. CSW Industrials has increased its dividend for 6 consecutive years.

Insider and Institutional Ownership

82.8% of CSW Industrials shares are held by institutional investors. 1.3% of CSW Industrials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for CSW Industrials and Western Asset High Income Fund II, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSW Industrials	0	6	1	0	2.14
Western Asset High Income Fund II	0	0	0	0	0.00

CSW Industrials presently has a consensus target price of $331.17, suggesting a potential upside of 4.48%. Given CSW Industrials’ stronger consensus rating and higher possible upside, analysts clearly believe CSW Industrials is more favorable than Western Asset High Income Fund II.

Summary

CSW Industrials beats Western Asset High Income Fund II on 10 of the 12 factors compared between the two stocks.

About CSW Industrials

CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. It operates through three segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The Contractor Solutions segment provides condensate pads, pans, pumps, switches, and traps; cements, diffusers, grilles, registers, solvents, thread sealants, and vents; line set covers; refrigerant caps; wire pulling head tools; electrical protection, chemical maintenance, and installation supplies for HVAC; ductless mini-split systems installation support tools and accessories; and drain waste and vent system products for use in HVAC/R, plumbing, general industrial, architecturally specified building products. The Engineered Building Solutions segment offers architectural railings and associated services; fire and smoke protection solutions; and pre-engineered and custom architectural building components for use in architecturally specified building products. The Specialized Reliability Solutions segment provides compounds, lubricants, lubricant management products, and sealants; desiccant breather filtration products; and contamination control, industrial maintenance and repair, rail friction modifiers, sealants, and operations solutions for use in energy, general industrial, mining, and rail transportation. The company was incorporated in 2014 and is headquartered in Dallas, Texas.

About Western Asset High Income Fund II

Western Asset High Income Fund II Inc. is a closed-ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. The fund is co-managed by Western Asset Management Company, Western Asset Management Company Limited, and Western Asset Management Company Pte. Ltd. It invests in the fixed income markets across the globe. The fund invests in securities of companies that operate across diversified sectors. It invests in high yield debt securities issued by U.S., foreign corporations and foreign governments. The fund employs a combination of quantitative and fundamental analysis with bottom-up security selection process to create its portfolio. It benchmarks the performance of its portfolio against Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index and the JPMorgan Emerging Markets Bond Index Global. Western Asset High Income Fund II, Inc. was formed on May 28, 1998 and is domiciled in the United States.