Contrasting Black Diamond Group (OTCMKTS:BDIMF) & HNI (NYSE:HNI)

HNI (NYSE:HNI) and Black Diamond Group (OTCMKTS:BDIMF) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Volatility & Risk

HNI has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Black Diamond Group has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Institutional & Insider Ownership

75.3% of HNI shares are held by institutional investors. 2.1% of HNI shares are held by insiders. Comparatively, 25.2% of Black Diamond Group 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.

Analyst Recommendations

This is a breakdown of current recommendations for HNI and Black Diamond Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HNI	0	1	1	0	2.50
Black Diamond Group	0	0	1	0	3.00

HNI currently has a consensus price target of $65.00, suggesting a potential upside of 38.46%. Given HNI’s higher probable upside, research analysts plainly believe HNI is more favorable than Black Diamond Group.

Dividends

HNI pays an annual dividend of $1.40 per share and has a dividend yield of 3.0%. Black Diamond Group pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. HNI pays out 1,555.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Diamond Group pays out 52.0% of its earnings in the form of a dividend. HNI has increased its dividend for 15 consecutive years. HNI is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares HNI and Black Diamond Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HNI	0.10%	13.66%	5.23%
Black Diamond Group	4.60%	7.24%	2.96%

Earnings & Valuation

This table compares HNI and Black Diamond Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HNI	$2.84 billion	1.19	$54.20 million	$0.09	521.62
Black Diamond Group	$326.99 million	3.04	$24.93 million	$0.25	58.24

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

Summary

HNI beats Black Diamond Group on 10 of the 16 factors compared between the two stocks.

About HNI

HNI Corporation, together with its subsidiaries, engages in the manufacture, sale, and marketing of workplace furnishings and residential building products primarily in the United States and Canada. The company operates through two segments, Workplace Furnishings and Residential Building Products. The Workplace Furnishings segment offers a range of commercial and home office furniture, including panel-based and freestanding furniture systems, seating, storage, benching, tables, architectural products, and ancillary and hospitality products, as well as social collaborative items under the HON, Allsteel, Beyond, Gunlocke, HBF, HBF Textiles, HNI India, Kimball, National, Etc., Interwoven, David Edward, Kimball Hospitality, and D'style brands. This segment sells its products through independent office products dealers, wholesalers, office product distributors, e-commerce focused resellers, and wholesalers, as well as directly to end-user customers and governments. The Residential Building Products segment provides various gas, wood, electric, and pellet-fueled prefabricated fireplaces; and inserts, hearth stoves, facings, outdoor fire pits and fire tables, and accessories. This segment sells its products primarily for home use under the Heatilator, Heat & Glo, Majestic, Monessen, Quadra-Fire, Harman, Vermont Castings, PelPro, Stellar, SimpliFire, The Outdoor GreatRoom Company, and Forge & Flame brand names through independent dealers and distributors, and corporation-owned distribution and retail outlets. The company was incorporated in 1944 and is headquartered in Muscatine, Iowa.

About Black Diamond Group

Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, high security modular buildings, custom manufactured modular facilities, blast resistant structures, SmartSpace interchangeable paneled units, and storage containers. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary rental items, products, and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. It also provides specialized field rentals to oil and gas industries. The company markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. Black Diamond Group Limited was founded in 2003 and is headquartered in Calgary, Canada.