Comparing Hillman Solutions (NASDAQ:HLMN) & Rectitude (NASDAQ:RECT)

Rectitude (NASDAQ:RECT) and Hillman Solutions (NASDAQ:HLMN) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Rectitude and Hillman Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Hillman Solutions	0.57%	8.81%	4.34%

Insider & Institutional Ownership

98.1% of Hillman Solutions shares are owned by institutional investors. 5.1% of Hillman Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rectitude and Hillman Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	0	0	0	0	0.00
Hillman Solutions	0	2	4	0	2.67

Hillman Solutions has a consensus price target of $14.20, suggesting a potential upside of 39.63%. Given Hillman Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Hillman Solutions is more favorable than Rectitude.

Valuation & Earnings

This table compares Rectitude and Hillman Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$41.35 million	2.45	$2.49 million	N/A	N/A
Hillman Solutions	$1.47 billion	1.36	-$9.59 million	$0.04	254.25

Rectitude has higher earnings, but lower revenue than Hillman Solutions.

Summary

Hillman Solutions beats Rectitude on 9 of the 11 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

About Hillman Solutions

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.