Financial Review: Uniroyal Global Engineered Products (OTCMKTS:UNIR) versus HNI (NYSE:HNI)

Uniroyal Global Engineered Products (OTCMKTS:UNIR) and HNI (NYSE:HNI) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Uniroyal Global Engineered Products and HNI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uniroyal Global Engineered Products	0	0	0	0	0.00
HNI	0	1	2	0	2.67

HNI has a consensus target price of $71.00, indicating a potential upside of 47.38%. Given HNI’s stronger consensus rating and higher probable upside, analysts clearly believe HNI is more favorable than Uniroyal Global Engineered Products.

Earnings and Valuation

This table compares Uniroyal Global Engineered Products and HNI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uniroyal Global Engineered Products	N/A	N/A	N/A	N/A	N/A
HNI	$2.53 billion	0.89	$139.50 million	$2.81	17.14

HNI has higher revenue and earnings than Uniroyal Global Engineered Products.

Risk & Volatility

Uniroyal Global Engineered Products has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, HNI has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

75.3% of HNI shares are held by institutional investors. 59.9% of Uniroyal Global Engineered Products shares are held by company insiders. Comparatively, 3.4% of HNI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Uniroyal Global Engineered Products and HNI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Uniroyal Global Engineered Products	N/A	N/A	N/A
HNI	5.35%	18.48%	7.99%

Summary

HNI beats Uniroyal Global Engineered Products on 8 of the 10 factors compared between the two stocks.

About Uniroyal Global Engineered Products

Uniroyal Global Engineered Products, Inc. develops, manufactures, and distributes vinyl coated fabrics used in transportation, residential, hospitality, health care, office furniture, and automotive applications. Its products in the automotive industry are used primarily in seating, door panels, head and arm rests, security shades, and trim components. The company’s non-automotive applications include outdoor seating for utility and sports vehicles; and sheeting used in medical and toxic hazard protection, personal protection, moisture barriers, stroller and nursery equipment, and decorative surface applications. It also manufactures textured coatings and polymer films. The company offers its products primarily under the Naugahyde, BeautyGard, Flameblocker, Spirit Millennium, Ambla, Amblon, Velbex, Cirroflex, Plastolene, and Vynide brands. It provides its products through sales persons, agents, and distributors in North America, Europe, Asia, and internationally. Uniroyal Global Engineered Products, Inc. was founded in 1992 and is based in Sarasota, Florida.

About HNI

HNI Corporation, together with its subsidiaries, engages in the manufacture, sale, and marketing of workplace furnishings and residential building products primarily in the United States and Canada. The company operates through two segments, Workplace Furnishings and Residential Building Products. The Workplace Furnishings segment offers a range of commercial and home office furniture, including panel-based and freestanding furniture systems, seating, storage, benching, tables, architectural products, and ancillary and hospitality products, as well as social collaborative items under the HON, Allsteel, Beyond, Gunlocke, HBF, HBF Textiles, HNI India, Kimball, National, Etc., Interwoven, David Edward, Kimball Hospitality, and D'style brands. This segment sells its products through independent office products dealers, wholesalers, office product distributors, e-commerce focused resellers, and wholesalers, as well as directly to end-user customers and governments. The Residential Building Products segment provides various gas, wood, electric, and pellet-fueled prefabricated fireplaces; and inserts, hearth stoves, facings, outdoor fire pits and fire tables, and accessories. This segment sells its products primarily for home use under the Heatilator, Heat & Glo, Majestic, Monessen, Quadra-Fire, Harman, Vermont Castings, PelPro, Stellar, SimpliFire, The Outdoor GreatRoom Company, and Forge & Flame brand names through independent dealers and distributors, and corporation-owned distribution and retail outlets. The company was incorporated in 1944 and is headquartered in Muscatine, Iowa.