Hillman Solutions (NASDAQ:HLMN – Get Free Report) and Caesarstone (NASDAQ:CSTE – Get Free Report) are both small-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Analyst Ratings
This is a summary of recent recommendations for Hillman Solutions and Caesarstone, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hillman Solutions | 0 | 5 | 4 | 0 | 2.44 |
| Caesarstone | 1 | 0 | 0 | 0 | 1.00 |
Hillman Solutions currently has a consensus target price of $11.83, suggesting a potential upside of 32.36%. Given Hillman Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe Hillman Solutions is more favorable than Caesarstone.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hillman Solutions | $1.47 billion | 1.20 | $17.25 million | $0.19 | 47.05 |
| Caesarstone | $443.22 million | 0.14 | -$42.83 million | ($2.03) | -0.88 |
Hillman Solutions has higher revenue and earnings than Caesarstone. Caesarstone is trading at a lower price-to-earnings ratio than Hillman Solutions, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
98.1% of Hillman Solutions shares are held by institutional investors. Comparatively, 33.7% of Caesarstone shares are held by institutional investors. 4.9% of Hillman Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Hillman Solutions has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Caesarstone has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500.
Profitability
This table compares Hillman Solutions and Caesarstone’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hillman Solutions | 2.44% | 9.71% | 4.95% |
| Caesarstone | -18.44% | -19.35% | -9.18% |
Summary
Hillman Solutions beats Caesarstone on 14 of the 14 factors compared between the two stocks.
About Hillman Solutions
Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.
About Caesarstone
Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.
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