Hubbell (NYSE: HUBB) and Hollysys Automation Technologies (NASDAQ:HOLI) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
This table compares Hubbell and Hollysys Automation Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hollysys Automation Technologies||18.89%||12.72%||8.71%|
85.3% of Hubbell shares are held by institutional investors. Comparatively, 67.1% of Hollysys Automation Technologies shares are held by institutional investors. 1.3% of Hubbell shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Hubbell and Hollysys Automation Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hollysys Automation Technologies||1||1||1||0||2.00|
Hubbell currently has a consensus price target of $154.00, suggesting a potential upside of 21.93%. Hollysys Automation Technologies has a consensus price target of $20.77, suggesting a potential downside of 21.95%. Given Hubbell’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Hubbell is more favorable than Hollysys Automation Technologies.
Hubbell pays an annual dividend of $3.08 per share and has a dividend yield of 2.4%. Hollysys Automation Technologies pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. Hubbell pays out 56.7% of its earnings in the form of a dividend. Hollysys Automation Technologies pays out 7.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Earnings and Valuation
This table compares Hubbell and Hollysys Automation Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hubbell||$3.67 billion||1.89||$243.10 million||$5.43||23.26|
|Hollysys Automation Technologies||$431.94 million||3.72||$68.94 million||$1.57||16.95|
Hubbell has higher revenue and earnings than Hollysys Automation Technologies. Hollysys Automation Technologies is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.
Hubbell beats Hollysys Automation Technologies on 12 of the 15 factors compared between the two stocks.
Hubbell Incorporated is engaged in the design, manufacture and sale of electrical and electronic products for a range of non-residential and residential construction, industrial and utility applications. The Company’s segments include Electrical and the Power. The Electrical segment consists of businesses that sell stock and custom products, including standard and special application wiring device products, rough-in electrical products, lighting fixtures and controls, components and assemblies for the natural gas distribution market, as well as other electrical equipment. In addition, certain businesses design and manufacture a range of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry.
About Hollysys Automation Technologies
Hollysys Automation Technologies Ltd. is a provider of automation and control technologies, and products. The Company’s segments include Industrial Automation (IA), Rail Transportation (rail), Mechanical and Electrical (M&E), and Miscellaneous. Its technologies are applied through its industrial automation solution suite, including the Distributed Control Systems, Programmable Logic Controller, Real-time Management Information System, HolliAS Asset Management System, Operator Training System, Batch Application Package, Advanced Process Control Package (HolliAS APC Suite), Safety Instrumentation System (SIS), railway signaling system of Train Control Center, Automatic Train Protection, Subway Supervisory and Control platform, nuclear power non-safety automation and control system HolliAs-NMS DCS and other products. It serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries in China, Southeast Asia, India, Europe and the Middle East.
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