Hill-Rom (NYSE: HRC) is one of 81 publicly-traded companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its peers? We will compare Hill-Rom to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Insider and Institutional Ownership

82.3% of Hill-Rom shares are owned by institutional investors. Comparatively, 65.6% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by institutional investors. 2.2% of Hill-Rom shares are owned by insiders. Comparatively, 12.0% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Hill-Rom and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hill-Rom 0 2 5 0 2.71
Hill-Rom Competitors 209 1246 2722 95 2.63

Hill-Rom presently has a consensus price target of $89.50, suggesting a potential upside of 7.69%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 4.42%. Given Hill-Rom’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Hill-Rom is more favorable than its peers.

Valuation and Earnings

This table compares Hill-Rom and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hill-Rom $2.74 billion $133.60 million 41.76
Hill-Rom Competitors $975.11 million $120.37 million 211.70

Hill-Rom has higher revenue and earnings than its peers. Hill-Rom 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.

Dividends

Hill-Rom pays an annual dividend of $0.72 per share and has a dividend yield of 0.9%. Hill-Rom pays out 36.2% of its earnings in the form of a dividend. As a group, “Medical Equipment, Supplies & Distribution” companies pay a dividend yield of 0.8% and pay out 36.9% of their earnings in the form of a dividend. Hill-Rom has increased its dividend for 6 consecutive years. Hill-Rom is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Hill-Rom and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hill-Rom 4.87% 20.27% 5.87%
Hill-Rom Competitors -421.16% -42.63% -12.33%

Volatility & Risk

Hill-Rom has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Hill-Rom’s peers have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

Summary

Hill-Rom beats its peers on 12 of the 15 factors compared.

Hill-Rom Company Profile

Hill-Rom Holdings, Inc. is a global medical technology company. The Company operates through four segments: North America Patient Support Systems, International Patient Support Systems, Front Line Care and Surgical Solutions. The Company’s products and services include Patient Support Systems, Front Line Care and Surgical Solutions. The Company sells and rents its specialty frames and surfaces, and mobility solutions, as well as its clinical workflow solutions, in the United States and Canada through its North America Patient Support Systems segment, and in regions outside of the United States and Canada through its International Patient Support Systems segment. Its Front Line Care segment globally sells and rents respiratory care products, and sells medical diagnostic equipment and a diversified portfolio of devices that assess, diagnose, treat and manage a range of illnesses and diseases. Under its Surgical Solutions segment, the Company sells its surgical products globally.

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