Critical Analysis: Hamilton Beach Brands (HBB) & Its Peers

Hamilton Beach Brands (NYSE:HBB) is one of 149 public companies in the “Household Durables” industry, but how does it contrast to its peers? We will compare Hamilton Beach Brands to related companies based on the strength of its risk, dividends, earnings, valuation, profitability, analyst recommendations and institutional ownership.

Dividends

Hamilton Beach Brands pays an annual dividend of $0.50 per share and has a dividend yield of 1.6%. Hamilton Beach Brands pays out 11.8% of its earnings in the form of a dividend. As a group, “Household Durables” companies pay a dividend yield of 4.5% and pay out 32.8% of their earnings in the form of a dividend. Hamilton Beach Brands has raised its dividend for 2 consecutive years.

Risk and Volatility

Hamilton Beach Brands has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Hamilton Beach Brands’ peers have a beta of 1.75, suggesting that their average share price is 75% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hamilton Beach Brands and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hamilton Beach Brands	$606.85 million	$26.45 million	7.27
Hamilton Beach Brands Competitors	$5.32 billion	$322.40 million	10.06

Hamilton Beach Brands’ peers have higher revenue and earnings than Hamilton Beach Brands. Hamilton Beach Brands is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

50.5% of Hamilton Beach Brands shares are owned by institutional investors. Comparatively, 53.7% of shares of all “Household Durables” companies are owned by institutional investors. 39.0% of Hamilton Beach Brands shares are owned by company insiders. Comparatively, 18.4% of shares of all “Household Durables” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hamilton Beach Brands	9.41%	30.70%	14.62%
Hamilton Beach Brands Competitors	-21.23%	-17.53%	1.13%

Analyst Ratings

This is a summary of recent recommendations for Hamilton Beach Brands and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Beach Brands	0	0	1	0	3.00
Hamilton Beach Brands Competitors	1741	7289	8065	304	2.40

As a group, “Household Durables” companies have a potential upside of 50.86%. Given Hamilton Beach Brands’ peers higher probable upside, analysts plainly believe Hamilton Beach Brands has less favorable growth aspects than its peers.

Summary

Hamilton Beach Brands peers beat Hamilton Beach Brands on 8 of the 15 factors compared.

Hamilton Beach Brands Company Profile

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.