NACCO Industries (NYSE: NC) and HRG Group (NYSE:HRG) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
This table compares NACCO Industries and HRG Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for NACCO Industries and HRG Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NACCO Industries pays an annual dividend of $1.09 per share and has a dividend yield of 1.4%. HRG Group does not pay a dividend. NACCO Industries pays out 21.0% of its earnings in the form of a dividend. NACCO Industries has raised its dividend for 3 consecutive years.
Volatility and Risk
NACCO Industries has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, HRG Group has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Earnings and Valuation
This table compares NACCO Industries and HRG Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NACCO Industries||$854.67 million||0.61||$27.70 million||$5.18||14.82|
|HRG Group||$5.00 billion||0.61||$857.70 million||$0.62||24.52|
HRG Group has higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than HRG Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
49.2% of NACCO Industries shares are owned by institutional investors. Comparatively, 94.4% of HRG Group shares are owned by institutional investors. 30.6% of NACCO Industries shares are owned by insiders. Comparatively, 1.2% of HRG Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
NACCO Industries beats HRG Group on 8 of the 13 factors compared between the two stocks.
About NACCO Industries
NACCO Industries, Inc. is a holding company. The Company’s principal businesses include mining, small appliances and specialty retail. The Company operates through three segments: NACoal, HBB and KC. The Company’s subsidiaries include The North American Coal Corporation (NACoal), Hamilton Beach Brands, Inc. (HBB) and Kitchen Collection, LLC (KC). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. The Company’s HBB segment designs, markets and distributes a range of small electric household and specialty housewares appliances, including, blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters and toaster ovens. In addition, HBB designs, markets and distributes commercial products for restaurants, bars and hotels.
About HRG Group
HRG Group, Inc. is a holding company. The Company operates through two segments: Consumer Products and Insurance. The Consumer Products segment consists of the Company’s subsidiary, Spectrum Brands Holdings, Inc. (Spectrum Brands). The Insurance segment includes its subsidiary, Front Street Re (Delaware) Ltd. (Front Street). Through Spectrum Brands, the Company is a diversified global branded consumer products company. The Company offers seven product categories: consumer batteries, small appliances, global pet supplies, home and garden control products, personal care products, hardware and home improvement products and global auto care. Through Front Street, the Company is engaged in the business of providing long-term reinsurance, including reinsurance to the specialty insurance sector of fixed, deferred and payout annuities. The Company’s subsidiary, Fidelity & Guaranty Life (FGL), provides life insurance and annuity products.
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