In the industrial machinery sector, two companies stand out: Hillenbrand, Inc. (HI) and ATS Corporation (ATS). Both firms are committed to innovation and automation, making them interesting contenders in a competitive landscape. While Hillenbrand focuses on diverse manufacturing solutions, ATS specializes in automation systems for various industries. In this article, I will analyze their strengths and strategies to help you determine which company presents the most compelling investment opportunity.
Table of contents
Company Overview
Hillenbrand, Inc. Overview
Hillenbrand, Inc. is a diversified industrial company that has established a strong presence in the global market. With operations spanning three main segments—Advanced Process Solutions, Molding Technology Solutions, and Batesville—Hillenbrand focuses on providing innovative equipment and system solutions across various industries, including food, pharmaceuticals, and funeral services. Founded in 1906 and headquartered in Batesville, Indiana, the company prides itself on delivering high-quality products and services that meet the evolving needs of its customers. Hillenbrand’s commitment to innovation and excellence positions it as a key player in the industrial machinery sector, with a market capitalization of approximately $2.24B.
ATS Corporation Overview
ATS Corporation, headquartered in Cambridge, Canada, specializes in automation solutions that enhance manufacturing efficiency across multiple sectors, including life sciences and energy. Since its inception in 1978, ATS has grown into a leading provider of automated manufacturing and assembly systems, offering a range of services from planning and design to post-automation support. The company’s emphasis on integrated solutions and real-time data management underscores its role in driving operational improvements for clients. With a market capitalization of around $2.50B, ATS is recognized for its innovative approach to automation and its commitment to delivering sustainable production solutions.
Key similarities and differences
Both Hillenbrand and ATS Corporation operate within the industrial machinery sector and focus on providing tailored solutions to their clients. However, while Hillenbrand has a diversified portfolio spanning funeral services and manufacturing equipment, ATS is primarily dedicated to automation technologies. Their business models reflect distinct industry focuses, with Hillenbrand catering to both product manufacturing and service-oriented markets, whereas ATS emphasizes automation and efficiency in production processes.
Income Statement Comparison
The following table provides a comparison of the most recent income statements for Hillenbrand, Inc. (HI) and ATS Corporation (ATS), highlighting key financial metrics.
| Metric | Hillenbrand, Inc. (HI) | ATS Corporation (ATS) |
|---|---|---|
| Market Cap | 2.24B | 2.50B |
| Revenue | 2.67B | 2.53B |
| EBITDA | 230.6M | 168.0M |
| EBIT | 92.1M | 15.3M |
| Net Income | 43.1M | -28.0M |
| EPS | 0.74 | -0.29 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year 2025, Hillenbrand, Inc. reported a revenue of 2.67B, a decline from 3.18B in 2024, indicating a downward trend. However, its net income rose to 43.1M from a significant loss the previous year, demonstrating improved profitability despite lower sales. Conversely, ATS Corporation’s revenue decreased from 3.03B in 2024 to 2.53B in 2025, resulting in a net loss of 28.0M, reflecting challenges in maintaining profitability. While Hillenbrand stabilized its margins, ATS showed a decline, suggesting a need for strategic review to enhance operational efficiency and profitability.
Financial Ratios Comparison
The following table provides a comparative overview of key financial ratios for Hillenbrand, Inc. (HI) and ATS Corporation (ATS) for their most recent fiscal year.
| Metric | Hillenbrand (HI) | ATS Corporation (ATS) |
|---|---|---|
| ROE | 3.66% | -1.64% |
| ROIC | -32.60% | 0.09% |
| P/E | 36.69 | -125.28 |
| P/B | 1.34 | 2.06 |
| Current Ratio | 1.22 | 1.69 |
| Quick Ratio | 0.88 | 1.41 |
| D/E | 1.12 | 0.99 |
| Debt-to-Assets | 36% | 37% |
| Interest Coverage | 0.55 | 0.09 |
| Asset Turnover | 0.60 | 0.55 |
| Fixed Asset Turnover | 7.80 | 5.66 |
| Payout Ratio | 121.69% | 0% |
| Dividend Yield | 3.32% | 0% |
Interpretation of Financial Ratios
Hillenbrand displays a strong current ratio and dividend yield, indicating better liquidity and shareholder returns compared to ATS. However, its ROE and ROIC are concerningly low, suggesting inefficiencies in generating profit from equity and capital. ATS shows strong asset turnover but struggles with profitability, reflected in its negative P/E ratio. Both companies face risks, particularly in their ability to cover interest expenses.
Dividend and Shareholder Returns
Hillenbrand, Inc. (HI) maintains a dividend payout ratio of approximately 121.69%, indicating potential sustainability concerns given its negative net profit margin. The company also engages in share buybacks, which could enhance shareholder value if managed prudently. In contrast, ATS Corporation (ATS) does not pay dividends, likely prioritizing reinvestment for growth during its high growth phase. However, it executes share buyback programs. Overall, both companies’ strategies reflect a cautious approach to long-term value creation, albeit with inherent risks.
Strategic Positioning
Hillenbrand, Inc. (HI) and ATS Corporation (ATS) operate within the competitive industrial machinery sector, each holding significant market shares in their respective niches. HI’s diversified offerings, particularly in advanced process solutions and molding technology, position it well against ATS, which focuses on automation solutions. However, both companies face competitive pressure from emerging technologies and market entrants. Continuous innovation and adaptation to technological disruptions are critical for maintaining their market standings and achieving sustainable growth.
Stock Comparison
In reviewing the stock price movements of Hillenbrand, Inc. (HI) and ATS Corporation (ATS) over the past year, key dynamics reveal significant price fluctuations and trading behaviors that investors should consider carefully.
Trend Analysis
For Hillenbrand, Inc. (HI), the stock has experienced a percentage change of -29.48% over the past year, indicating a bearish trend. The stock has shown notable volatility with a standard deviation of 9.44. The highest price recorded during this period was 50.29, while the lowest was 18.75. In recent trends, from September 14, 2025, to November 30, 2025, HI has increased by 29.59%, suggesting a short-term recovery despite the overall bearish sentiment and an accelerating trend.
Conversely, ATS Corporation (ATS) has seen a more pronounced bearish trend with a total percentage change of -37.73% over the past year. This stock reflects a deceleration in its downward movement, with a standard deviation of 4.45. The highest price for ATS was 43.82, with a low of 23.5. In the recent analysis from September 14, 2025, to November 30, 2025, ATS has declined further by 6.39%, indicating continued weakness in its price action.
In summary, both stocks exhibit bearish trends over the longer term, with HI showing signs of recovery in the short term, while ATS continues to face downward pressure.
Analyst Opinions
Recent analyst recommendations for Hillenbrand, Inc. (HI) indicate a consensus rating of “Buy” with a B+ rating, supported by strong scores in discounted cash flow (4) and price-to-book (4) metrics. Analysts emphasize its robust return on assets (5) and overall growth potential. In contrast, ATS Corporation (ATS) holds a “Sell” consensus with a C rating, primarily due to weak performance in return on equity (1) and price-to-earnings (1) scores. Analysts suggest caution for ATS given its lackluster financial health.
Stock Grades
In this section, I present the latest stock ratings for Hillenbrand, Inc. and ATS Corporation based on reliable grading data.
Hillenbrand, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-11-20 |
| DA Davidson | Maintain | Neutral | 2025-10-16 |
| CJS Securities | Downgrade | Market Perform | 2025-10-16 |
| Keybanc | Downgrade | Sector Weight | 2025-05-08 |
| DA Davidson | Maintain | Neutral | 2025-05-01 |
| DA Davidson | Maintain | Neutral | 2024-11-15 |
| Keybanc | Maintain | Overweight | 2024-11-14 |
| DA Davidson | Downgrade | Neutral | 2024-08-12 |
| DA Davidson | Maintain | Buy | 2021-02-08 |
| DA Davidson | Maintain | Buy | 2021-02-07 |
ATS Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2024-08-13 |
| Goldman Sachs | Maintain | Sell | 2024-08-13 |
| JP Morgan | Maintain | Neutral | 2024-05-24 |
Overall, the grades for Hillenbrand, Inc. reflect a cautious trend with multiple downgrades, suggesting a need for investors to closely monitor this stock. Meanwhile, ATS Corporation maintains a neutral outlook from both JP Morgan and Goldman Sachs, indicating a stable but cautious market perception.
Target Prices
Analysts have set clear target prices for the following companies, indicating their expectations for stock performance.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Hillenbrand, Inc. | 32 | 32 | 32 |
| ATS Corporation | 34 | 34 | 34 |
For Hillenbrand, Inc., the target price consensus matches closely with its current price of 31.84, suggesting limited upside. In contrast, ATS Corporation’s target consensus of 34 indicates a potential upside from its current price of 25.51, reflecting more optimistic analyst sentiment.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Hillenbrand, Inc. and ATS Corporation based on recent financial data.
| Criterion | Hillenbrand, Inc. (HI) | ATS Corporation (ATS) |
|---|---|---|
| Diversification | Strong (operates in multiple sectors) | Moderate (focused on automation solutions) |
| Profitability | Low (net profit margin: 1.95%) | Low (net profit margin: -1.11%) |
| Innovation | Moderate (invests in new technologies) | High (focus on automation and engineering solutions) |
| Global presence | Strong (operates internationally) | Moderate (growing global footprint) |
| Market Share | Moderate | Moderate |
| Debt level | High (debt-to-equity: 1.12) | Moderate (debt-to-equity: 0.99) |
Key takeaways indicate that while Hillenbrand has a diverse range of operations and a strong global presence, its profitability remains low compared to ATS, which excels in innovation but struggles with profitability as well. Both companies show a need for better debt management.
Risk Analysis
In this section, we will examine the key risks associated with two companies, Hillenbrand, Inc. (HI) and ATS Corporation (ATS), to help investors make informed decisions.
| Metric | Hillenbrand, Inc. (HI) | ATS Corporation (ATS) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | High |
| Environmental Risk | Moderate | Moderate |
| Geopolitical Risk | Low | Moderate |
Both companies face significant operational risks, particularly in supply chain disruptions and labor shortages, which have been prevalent in the industrial sector. Market fluctuations and regulatory changes could also impact their performance, making it vital to consider these factors when investing.
Which one to choose?
When comparing Hillenbrand, Inc. (HI) and ATS Corporation (ATS), the fundamentals favor HI, which has a higher market cap at 1.91B compared to ATS’s 3.51B. HI shows a better gross profit margin of 33.7% versus ATS’s 25.5%, indicating stronger profitability. The price-to-earnings ratio is more favorable for HI (36.7) compared to ATS (N/A due to negative earnings). Analyst ratings also reflect this, with HI rated B+ and ATS rated C. However, both stocks are facing bearish trends, with HI experiencing a 29.5% decline and ATS a 37.7% drop.
For growth-oriented investors, I would recommend HI due to its superior profitability metrics and analyst ratings. Conversely, those prioritizing stability might find ATS a reasonable option, albeit with higher risks associated with its current financial performance.
Specific risks include market competition and potential supply chain disruptions impacting both companies.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Hillenbrand, Inc. and ATS Corporation to enhance your investment decisions:
