Hamilton Beach Brands (HBB) vs. The Competition Critical Review

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

Valuation and Earnings

This table compares Hamilton Beach Brands and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hamilton Beach Brands	$606.85 million	$26.45 million	7.06
Hamilton Beach Brands Competitors	$127.74 billion	$322.40 million	9.54

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

Analyst Recommendations

This is a breakdown of current ratings for Hamilton Beach Brands and its competitors, 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	1750	7300	8071	306	2.40

As a group, “Household Durables” companies have a potential upside of 55.73%. Given Hamilton Beach Brands’ competitors higher possible upside, analysts clearly believe Hamilton Beach Brands has less favorable growth aspects than its competitors.

Profitability

This table compares Hamilton Beach Brands and its competitors’ 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	-21.24%	-17.55%	1.13%

Institutional and Insider Ownership

50.5% of Hamilton Beach Brands shares are held by institutional investors. Comparatively, 53.7% of shares of all “Household Durables” companies are held by institutional investors. 39.0% of Hamilton Beach Brands shares are held by insiders. Comparatively, 18.5% of shares of all “Household Durables” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

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

Dividends

Hamilton Beach Brands pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. 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 4.7% and pay out 33.1% of their earnings in the form of a dividend. Hamilton Beach Brands has raised its dividend for 2 consecutive years.

Summary

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

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.