In the competitive landscape of the industrial machinery sector, two companies stand out: Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI). Both firms operate within the same industry, yet they pursue distinct innovation strategies and cater to different market needs. Nordson focuses on advanced dispensing systems for adhesives and coatings, while Hillenbrand offers a diversified range of industrial solutions, including process equipment and funeral products. In this analysis, I will help you determine which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
Nordson Corporation Overview
Nordson Corporation, trading under the ticker NDSN, is a leader in the industrial machinery sector, specializing in the engineering and manufacturing of precision dispensing systems for adhesives, coatings, and other materials. Founded in 1935 and headquartered in Westlake, Ohio, Nordson operates through two main segments: Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). These segments provide a wide range of products, from automated adhesive dispensing systems to advanced equipment for semiconductor and printed circuit board industries. With a market capitalization of approximately $13.27B and a commitment to innovation, Nordson continues to enhance its position in global markets.
Hillenbrand, Inc. Overview
Hillenbrand, Inc., with the ticker HI, is a diversified industrial company based in Batesville, Indiana. Founded in 1906, it operates across three segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville, which focuses on funeral services. The company is known for designing and manufacturing a variety of equipment and systems for industries like plastics, food, and pharmaceuticals. Hillenbrand has a market capitalization of around $2.24B and emphasizes its broad portfolio to meet client needs across various sectors, reinforcing its market presence.
Key similarities and differences
Both Nordson and Hillenbrand operate within the industrial machinery sector, focusing on specialized equipment for diverse applications. However, their business models differ significantly; Nordson leans heavily on dispensing systems and technology solutions, while Hillenbrand has a broader industrial focus, including funeral services. This distinction highlights how they cater to varying market needs and customer bases.
Income Statement Comparison
Below is a comparison of the income statements for Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) for their most recent fiscal years.
| Metric | Nordson Corporation (NDSN) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Market Cap | 13.27B | 2.24B |
| Revenue | 2.79B | 2.67B |
| EBITDA | 711M | 231M |
| EBIT | 561M | 92M |
| Net Income | 484M | 43M |
| EPS | 8.56 | 0.74 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, Nordson Corporation reported a revenue increase to 2.79B, up from 2.69B the previous year, indicating stable growth. Conversely, Hillenbrand’s revenue decreased from 3.18B to 2.67B, reflecting a significant decline. Despite Nordson’s strong performance in EBITDA and net income margins, Hillenbrand struggled with profitability, posting a modest net income of 43M. Overall, Nordson appears well-positioned for growth, while Hillenbrand may need to implement strategies to address its declining performance.
Financial Ratios Comparison
Here’s a comparative analysis of the financial metrics for Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) based on the most recent data available.
| Metric | NDSN | HI |
|---|---|---|
| ROE | 16% | 3.66% |
| ROIC | 9.65% | -32.60% |
| P/E | 27.10 | -9.28 |
| P/B | 4.87 | 1.34 |
| Current Ratio | 2.41 | 1.22 |
| Quick Ratio | 1.51 | 0.88 |
| D/E | 0.79 | 1.12 |
| Debt-to-Assets | 39% | 39% |
| Interest Coverage | 7.58 | 0.55 |
| Asset Turnover | 0.45 | 0.60 |
| Fixed Asset Turnover | 4.21 | 6.54 |
| Payout Ratio | 36.96% | -296.21% |
| Dividend Yield | 1.36% | 3.31% |
Interpretation of Financial Ratios
From the analysis, NDSN exhibits stronger profitability metrics with a solid ROE and ROIC, indicating effective use of equity. In contrast, HI shows concerning figures, especially a negative P/E and ROIC, suggesting financial instability. The high debt-to-equity ratio for HI raises red flags about leverage risks. While NDSN maintains a healthy current and quick ratio, HI struggles with liquidity, highlighting the need for cautious investment in HI.
Dividend and Shareholder Returns
Nordson Corporation (NDSN) maintains a healthy dividend policy with a payout ratio of approximately 37%, offering a dividend yield around 1.36%. The company has demonstrated a consistent trend in dividend payments, supported by strong free cash flow, though potential risks include unsustainable distributions if earnings falter. In contrast, Hillenbrand, Inc. (HI) does not currently pay dividends, focusing instead on reinvesting in growth initiatives. Despite this, HI engages in share buybacks, suggesting a commitment to enhancing shareholder value. Ultimately, both strategies reflect different approaches to long-term value creation, with Nordson’s dividends providing immediate returns and Hillenbrand’s reinvestment supporting future growth.
Strategic Positioning
In the industrial machinery sector, Nordson Corporation (NDSN) holds a significant market share with its advanced dispensing and coating systems, while Hillenbrand, Inc. (HI) diversifies across multiple segments, including process solutions and molding technologies. Both companies face competitive pressure from emerging technologies that promote automation and efficiency. As they navigate this landscape, technological disruption remains a key consideration, influencing product development and market positioning strategies.
Stock Comparison
Over the past year, the stock prices of Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) have exhibited significant movements, reflecting the underlying trading dynamics and investor sentiments in their respective markets.
Trend Analysis
Nordson Corporation (NDSN): The overall price change for NDSN over the past year is -6.75%, indicating a bearish trend. Notably, the stock has experienced a high of 278.89 and a low of 176.73, with an acceleration in its downtrend and a standard deviation of 23.71, suggesting heightened volatility. However, in the recent period from September 28, 2025, to December 14, 2025, NDSN has seen a price increase of 4.11%, reflecting a neutral trend overall due to the short-term recovery amidst the longer-term bearish behavior.
Hillenbrand, Inc. (HI): HI has faced a more pronounced decline, with an overall price change of -29.8%, firmly establishing a bearish trend. The stock reached a high of 50.29 and a low of 18.75, also experiencing acceleration in its downtrend characterized by a standard deviation of 9.28. However, from September 28, 2025, to December 14, 2025, HI has rebounded significantly with a price increase of 22.42%, indicating a neutral trend in this brief period, despite the larger bearish trend.
In summary, both companies exhibit bearish trends over the past year, with NDSN showing signs of recovery in its recent price movements, while HI has experienced a significant rebound in a shorter timeframe.
Analyst Opinions
Recent analyst recommendations for Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) indicate a consensus rating of B+. Analysts appreciate NDSN’s strong return on assets (5) and discounted cash flow score (4), citing its solid financial health as a key factor for a buy. Conversely, HI shares a similar rating, with strengths in return on assets (5) and price-to-book score (4), but lower marks in debt management (1). Both companies are viewed positively, suggesting a buy consensus for the current year in 2025.
Stock Grades
As we analyze the latest stock grades, it is crucial to consider the insights provided by reputable grading firms. Here are the recent evaluations for Nordson Corporation and Hillenbrand, Inc.
Nordson Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | maintain | Outperform | 2025-08-25 |
| Baird | maintain | Neutral | 2025-08-22 |
| Keybanc | maintain | Overweight | 2025-07-15 |
| Oppenheimer | upgrade | Outperform | 2025-05-30 |
| Baird | maintain | Neutral | 2025-05-30 |
| Keybanc | maintain | Overweight | 2025-04-08 |
| Keybanc | upgrade | Overweight | 2025-03-04 |
| Baird | maintain | Neutral | 2025-02-21 |
| Loop Capital | upgrade | Buy | 2025-01-22 |
| Seaport Global | upgrade | Buy | 2024-12-17 |
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 |
In summary, Nordson Corporation shows a consistent trend of maintaining strong grades, with several upgrades indicating positive sentiment. Conversely, Hillenbrand, Inc. has experienced some downgrades, particularly in recent assessments, suggesting a more cautious outlook among analysts.
Target Prices
The target consensus for the companies analyzed reflects positive expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Nordson Corporation (NDSN) | 285 | 240 | 263 |
| Hillenbrand, Inc. (HI) | 32 | 32 | 32 |
For Nordson Corporation (NDSN), the consensus target price of 263 indicates a potential upside from its current trading price of 236.19. Meanwhile, Hillenbrand, Inc. (HI) has a target consensus of 32, which is slightly above its current price of 31.83, suggesting limited growth expectations.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) based on the most recent data:
| Criterion | Nordson Corporation (NDSN) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Diversification | Strong across multiple sectors | Moderate, focused on industrial machinery and funeral services |
| Profitability | High net profit margin (17.35%) | Low net profit margin (1.95%) |
| Innovation | Strong emphasis on R&D | Moderate innovation focus |
| Global presence | Well-established internationally | Primarily U.S., with some international reach |
| Market Share | Significant in industrial sector | Smaller share in niche markets |
| Debt level | Low debt-to-equity ratio (0.79) | Higher debt-to-equity ratio (1.12) |
Key takeaways indicate that Nordson Corporation demonstrates stronger profitability and lower debt levels, while Hillenbrand, Inc. has a more niche focus and faces challenges in profitability and debt management. Careful consideration is essential when evaluating these companies for investment.
Risk Analysis
Below is a summary of key risks associated with two companies, Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI).
| Metric | Nordson Corporation (NDSN) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | Low | Moderate |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | Low | Moderate |
In summary, Hillenbrand, Inc. faces higher market and regulatory risks compared to Nordson Corporation, which maintains a more stable operational profile. The environmental risks for both companies are significant, especially in the current climate-focused regulatory landscape.
Which one to choose?
When comparing Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI), both companies receive a rating of B+, indicating solid fundamentals. NDSN showcases a higher gross profit margin (55.2%) and a better net profit margin (17.4%) compared to HI’s gross margin (33.7%) and net margin (1.6%). NDSN also exhibits more robust financial metrics with a lower price-to-earnings ratio of 27.1 versus HI’s 36.7, suggesting better value relative to earnings. However, HI has demonstrated a recent upward trend in stock price (22.4% increase), indicating potential recovery, while NDSN’s recent performance has been bearish, down 6.8%.
Investors focused on growth may prefer NDSN due to its strong margins and profitability, while those interested in potential turnaround opportunities could consider HI. It’s essential to note the risks of competition and industry volatility that may impact 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 Nordson Corporation and Hillenbrand, Inc. to enhance your investment decisions:
