Analyzing Hillman Solutions (NASDAQ:HLMN) and CompX International (NYSE:CIX)

CompX International (NYSE:CIX – Get Rating) and Hillman Solutions (NASDAQ:HLMN – Get Rating) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

8.3% of CompX International shares are held by institutional investors. 0.4% of CompX International shares are held by insiders. Comparatively, 2.9% of Hillman Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

CompX International has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Hillman Solutions has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Earnings & Valuation

This table compares CompX International and Hillman Solutions’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompX International	$166.60 million	1.34	$20.87 million	$1.78	10.21
Hillman Solutions	$1.49 billion	1.03	-$16.44 million	($0.13)	-60.46

CompX International has higher earnings, but lower revenue than Hillman Solutions. Hillman Solutions is trading at a lower price-to-earnings ratio than CompX International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CompX International and Hillman Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompX International	13.28%	13.48%	12.13%
Hillman Solutions	-1.61%	6.56%	3.00%

Analyst Ratings

This is a summary of recent recommendations for CompX International and Hillman Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompX International	0	0	0	0	N/A
Hillman Solutions	0	0	3	0	3.00

Hillman Solutions has a consensus target price of $11.63, suggesting a potential upside of 47.90%. Given Hillman Solutions’ higher possible upside, analysts plainly believe Hillman Solutions is more favorable than CompX International.

Summary

CompX International beats Hillman Solutions on 8 of the 13 factors compared between the two stocks.

About CompX International

(Get Rating)

CompX International, Inc. engages in the manufacture of security products used in the recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, and a variety of other industries. It operates through the Security Products and Marine Components segments. The Security Products segment manufactures mechanical and electronic cabinet locks and other locking mechanisms used in a variety of applications including ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and gaming machines, high security medical cabinetry, electronic circuit panels, storage compartments, and gas station security. The Marine Components segment manufactures and distributes stainless steel exhaust components, gauges, throttle controls, trim tabs, hardware, and accessories primarily for performance and ski and wakeboard boats. The company was founded in 1993 and is headquartered in Dallas, TX.

About Hillman Solutions

(Get Rating)

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.