Head to Head Comparison: Hillenbrand (HI) vs. PlayAGS (AGS)

Hillenbrand (NYSE: HI) and PlayAGS (NYSE:AGS) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hillenbrand 0 1 2 0 2.67
PlayAGS 0 1 4 0 2.80

Hillenbrand presently has a consensus target price of $53.00, indicating a potential upside of 10.88%. PlayAGS has a consensus target price of $24.75, indicating a potential upside of 8.08%. Given Hillenbrand’s higher possible upside, equities analysts clearly believe Hillenbrand is more favorable than PlayAGS.

Profitability

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

Net Margins Return on Equity Return on Assets
Hillenbrand 3.99% 20.08% 7.56%
PlayAGS N/A N/A N/A

Insider & Institutional Ownership

79.1% of Hillenbrand shares are held by institutional investors. Comparatively, 6.9% of PlayAGS shares are held by institutional investors. 1.8% of Hillenbrand shares are held 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.

Earnings & Valuation

This table compares Hillenbrand and PlayAGS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hillenbrand $1.59 billion 1.88 $126.20 million $2.11 22.65
PlayAGS $211.96 million 3.80 -$45.10 million ($1.94) -11.80

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

Dividends

Hillenbrand pays an annual dividend of $0.83 per share and has a dividend yield of 1.7%. PlayAGS does not pay a dividend. Hillenbrand pays out 39.3% of its earnings in the form of a dividend. Hillenbrand has raised its dividend for 10 consecutive years.

Summary

Hillenbrand beats PlayAGS on 11 of the 15 factors compared between the two stocks.

About Hillenbrand

Hillenbrand, Inc. operates as a diversified industrial company worldwide. 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, and forest products. It provides compounding equipment comprising 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. In addition, 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, and urns; selection room display fixtures for funeral homes; personalization and memorialization products and services; and Web-based applications consisting of funeral planning, Website products, and back office software for licensed funeral homes to licensed funeral professionals operating licensed funeral establishments. This segment develops and markets operational management software solutions for cemeteries. The company was founded in 2007 and is headquartered in Batesville, Indiana.

About PlayAGS

PlayAGS, Inc. designs and supplies electronic gaming machines (EGMs), and other products and services for the gaming industry in the United States and internationally. It operates in three segments: EGMs, Table Products, and Interactive. The EGM segment offers various video slot titles, which include ICON, Halo, Colossal Diamonds cabinet, and Orion; and conversion kits that allow existing game titles to be converted to other game titles offered within that operating platform. The Table Products segment provides table products, side-bets, and table technology related to blackjack, poker, baccarat, craps, and roulette, as well as ancillary table products. Its brands include In-Bet, Buster Blackjack, Double Draw Poker, and Criss Cross Poker. The Interactive segment offers social gaming products through its mobile apps, Lucky Play Casino and Vegas Fever. It serves Class II Native American and Mexican gaming jurisdictions, and Class III Native American, commercial, and charity jurisdictions. The company was formerly known as AP Gaming Holdco, Inc. and changed its name to PlayAGS, Inc. in December 2017. PlayAGS, Inc. was founded in 2005 and is headquartered in Las Vegas, Nevada.

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