Sun Hydraulics (NASDAQ:SNHY) and Hebron Technology (NASDAQ:HEBT) are both small-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider and Institutional Ownership

86.2% of Sun Hydraulics shares are owned by institutional investors. Comparatively, 0.4% of Hebron Technology shares are owned by institutional investors. 7.8% of Sun Hydraulics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Sun Hydraulics pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. Hebron Technology does not pay a dividend. Sun Hydraulics pays out 22.5% of its earnings in the form of a dividend.

Profitability

This table compares Sun Hydraulics and Hebron Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sun Hydraulics 7.29% 10.64% 6.34%
Hebron Technology N/A N/A N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sun Hydraulics and Hebron Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sun Hydraulics 0 2 4 0 2.67
Hebron Technology 0 0 0 0 N/A

Sun Hydraulics presently has a consensus target price of $57.80, indicating a potential upside of 39.95%. Given Sun Hydraulics’ higher possible upside, analysts clearly believe Sun Hydraulics is more favorable than Hebron Technology.

Volatility and Risk

Sun Hydraulics has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Hebron Technology has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sun Hydraulics and Hebron Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sun Hydraulics $342.84 million 3.85 $31.55 million $1.60 25.81
Hebron Technology $29.20 million 0.57 $7.13 million N/A N/A

Sun Hydraulics has higher revenue and earnings than Hebron Technology.

Summary

Sun Hydraulics beats Hebron Technology on 12 of the 13 factors compared between the two stocks.

About Sun Hydraulics

Helios Technologies designs, manufactures, and sells screw-in hydraulic cartridge valves, manifolds, and integrated fluid power packages and subsystems used in hydraulic systems worldwide. The company operates through two segments, Hydraulics and Electronics. Its screw-in hydraulic cartridge valves and manifolds control force, speed, and motion as integral components in fluid power systems. The company offers various screw-in hydraulic cartridge valves, including electrically actuated and non-electrically actuated products; electro-hydraulics; manifolds that are machined to create threaded cavities and channels; and integrated package solutions, which consists of multiple cartridge valves assembled into a custom designed manifolds for industrial and mobile hydraulics markets under the Sun Hydraulics brand name. It also designs and manufactures electronic control, display, and instrumentation solutions for recreational and off-highway vehicles, and stationary and power generation equipment under the Enovation Controls, Murphy, and Zero Off brand names; and digital and analog electronic controller products for the fluid power industry under the HCT brand name. The company sells its hydraulic products primarily through independent fluid power channel partners, as well as directly to original equipment manufacturer customers and other companies in the hydraulics industry; and electronic products to original equipment manufacturer customers. The company was formerly known as Sun Hydraulics Corporation and changed its name to Helios Technologies in August 2018. Helios Technologies was founded in 1970 and is headquartered in Sarasota, Florida.

About Hebron Technology

Hebron Technology Co., Ltd., through its subsidiaries, engages in the research, development, manufacture, and installation of valves, pipe fittings, and other products primarily for use in pharmaceutical engineering sector in the People's Republic of China. The company offers diaphragm valves, angle seat valves, sanitary centrifugal and liquid-ring pumps, clean-in-place return pumps, sanitary ball valves, and sanitary pipe fittings. It also provides pipeline design, installation, construction, ongoing maintenance, and after-sales services. The company offers its fluid equipment and installation services for use in the pharmaceutical, biological, food and beverage, and other clean industries. Hebron Technology Co., Ltd. was founded in 2005 and is headquartered in Wenzhou, the People's Republic of China.

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