Financial Analysis: Hamilton Beach Brands (NYSE:HBB) vs. Persimmon (OTCMKTS:PSMMY)

Persimmon (OTCMKTS:PSMMY) and Hamilton Beach Brands (NYSE:HBB) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Profitability

This table compares Persimmon and Hamilton Beach Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Persimmon	N/A	N/A	N/A
Hamilton Beach Brands	9.41%	30.70%	14.62%

Institutional and Insider Ownership

50.5% of Hamilton Beach Brands shares are owned by institutional investors. 0.6% of Persimmon shares are owned by insiders. Comparatively, 39.0% of Hamilton Beach Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Persimmon pays an annual dividend of $2.01 per share and has a dividend yield of 6.2%. Hamilton Beach Brands pays an annual dividend of $0.50 per share and has a dividend yield of 1.5%. Hamilton Beach Brands pays out 11.8% of its earnings in the form of a dividend. Hamilton Beach Brands has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Persimmon and Hamilton Beach Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Persimmon	$4.95 billion	1.04	$376.75 million	N/A	N/A
Hamilton Beach Brands	$606.85 million	0.73	$26.45 million	$4.25	7.79

Persimmon has higher revenue and earnings than Hamilton Beach Brands.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Persimmon and Hamilton Beach Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Persimmon	1	0	5	0	2.67
Hamilton Beach Brands	0	1	0	0	2.00

Risk and Volatility

Persimmon has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Hamilton Beach Brands has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Summary

Persimmon beats Hamilton Beach Brands on 8 of the 14 factors compared between the two stocks.

About Persimmon

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; housing under the Charles Church brand name; and social housing under the Westbury Partnerships brand name. It also provides broadband services under the FibreNest brand; and timber frame, insulated wall panels, and roof cassettes under the brand Space4. Further, it offers concrete bricks and roof tile. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.

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.