Critical Survey: HC2 (HCHC) & General Electric (GE)
General Electric (NYSE: GE) and HC2 (NYSE:HCHC) are both multi-sector conglomerates companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Insider & Institutional Ownership
55.6% of General Electric shares are owned by institutional investors. Comparatively, 59.9% of HC2 shares are owned by institutional investors. 0.4% of General Electric shares are owned by company insiders. Comparatively, 16.0% of HC2 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares General Electric and HC2’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for General Electric and HC2, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
General Electric presently has a consensus price target of $23.79, indicating a potential upside of 36.46%. HC2 has a consensus price target of $11.50, indicating a potential upside of 94.92%. Given HC2’s stronger consensus rating and higher probable upside, analysts clearly believe HC2 is more favorable than General Electric.
Volatility and Risk
General Electric has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, HC2 has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
General Electric pays an annual dividend of $0.96 per share and has a dividend yield of 5.5%. HC2 does not pay a dividend. General Electric pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares General Electric and HC2’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|General Electric||$123.69 billion||1.22||$8.83 billion||$0.80||21.79|
|HC2||$1.56 billion||0.16||-$94.54 million||($2.57)||-2.30|
General Electric has higher revenue and earnings than HC2. HC2 is trading at a lower price-to-earnings ratio than General Electric, indicating that it is currently the more affordable of the two stocks.
General Electric beats HC2 on 11 of the 16 factors compared between the two stocks.
About General Electric
General Electric Company is a global digital industrial company. The Company’s products and services range from aircraft engines, power generation, and oil and gas production equipment to medical imaging, financing and industrial products. Its segments include Power, which includes products and services related to energy production; Renewable Energy, which offers renewable power sources; Oil & Gas, including liquefied natural gas and pipelines; Aviation, which includes commercial and military aircraft engines, and integrated digital components, among others; Healthcare, which provides healthcare technologies in medical imaging, digital solutions, patient monitoring and diagnostics, and drug discovery, among others; Transportation, which is a supplier to the railroad, mining, marine, stationary power and drilling industries; Energy Connections & Lighting, which includes Energy Connections and Lighting businesses, and Capital, which is a financial services division.
HC2 Holdings, Inc. engages in construction, marine services, insurance, telecommunications, energy, life sciences, and other businesses in the United States, the United Kingdom, and internationally. The company fabricates and erects structural steel for commercial and industrial construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, and power plants. It also fabricates trusses and girders; and fabricates and erects water pipes, water storage tanks, pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators, and various customized products. In addition, the company provides subsea cable installation and maintenance services for the telecommunications sector; installation, maintenance, and repair services for fiber optic communication and power infrastructure to offshore platforms; and installation services for power cables for use in offshore wind farms and in the offshore wind market. Further, it distributes natural gas motor fuels; designs, builds, owns, acquires, operates, and maintains compressed natural gas fueling stations for transportation vehicles; and offers voice communication services for national telecommunications, mobile, prepaid, and voice over Internet protocol service operators, as well as wholesale carriers and Internet service providers. Additionally, the company provides long-term care, life, and annuity insurance products to individuals. Furthermore, it focuses on developing products to treat early osteoarthritis of the knee; develops skin lightening technology; owns licenses to create and distribute NASCAR video games; and offers analytics on broadcast TV, digital, and social media online platforms. The company was formerly known as PTGi Holding Inc. and changed its name to HC2 Holdings, Inc. in April 2014. HC2 Holdings, Inc. was founded in 1994 and is headquartered in New York, New York.
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