Head-To-Head Comparison: Hamilton Beach Brands (NYSE:HBB) versus Traeger (NYSE:COOK)

Traeger (NYSE:COOK) and Hamilton Beach Brands (NYSE:HBB) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Earnings and Valuation

This table compares Traeger and Hamilton Beach Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$559.52 million	0.29	-$115.18 million	($42.04)	-1.40
Hamilton Beach Brands	$606.85 million	0.73	$26.45 million	$4.25	7.79

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

Profitability

This table compares Traeger and Hamilton Beach Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Traeger	-23.23%	-13.76%	-3.59%
Hamilton Beach Brands	9.41%	30.70%	14.62%

Analyst Ratings

This is a breakdown of current ratings and target prices for Traeger and Hamilton Beach Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	1	5	1	0	2.00
Hamilton Beach Brands	0	1	0	0	2.00

Traeger presently has a consensus price target of $50.50, suggesting a potential downside of 14.16%. Given Traeger’s higher possible upside, research analysts clearly believe Traeger is more favorable than Hamilton Beach Brands.

Institutional and Insider Ownership

46.8% of Traeger shares are held by institutional investors. Comparatively, 50.5% of Hamilton Beach Brands shares are held by institutional investors. 16.2% of Traeger shares are held by insiders. Comparatively, 39.0% of Hamilton Beach Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Traeger has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Hamilton Beach Brands has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Summary

Hamilton Beach Brands beats Traeger on 10 of the 13 factors compared between the two stocks.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

About Hamilton Beach Brands

Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally. It offers air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. The company also provides consumer products under the Hamilton Beach and Proctor Silex brands; products under the Hamilton Beach Professional in the premium market; farm-to-table and field-to-table food processing equipment under the Weston brand; countertop appliances under the Wolf Gourmet brand; garment care products under the CHI brand; cocktail delivery system under the Bartesian brand; air purifiers under the Clorox and TrueAir brands; and water filtration systems under the Brita brand. In addition, it offers injection care management system under the Hamilton Beach Health brand; and commercial products under the Hamilton Beach Commercial and the Proctor Silex Commercial brands, as well as supplies private label products. The company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety store and drug store chains, specialty home retailers, distributors, restaurants, fast food chains, bars, hotels, and other retail outlets. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.