In today’s competitive industrial landscape, two players stand out: Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI). Both companies operate within the industrial machinery sector, showcasing innovative strategies and diverse product offerings that cater to essential markets. While Nordson focuses on precision dispensing and application systems, Hillenbrand emphasizes advanced process solutions and molding technologies. In this analysis, I will help you determine which of these companies presents the more compelling investment opportunity.
Table of contents
Company Overview
Nordson Corporation Overview
Nordson Corporation (NDSN) is a leader in precision technology for manufacturing processes. Founded in 1935 and headquartered in Westlake, Ohio, the company specializes in the engineering, manufacturing, and marketing of systems that dispense, apply, and control adhesives, coatings, and other fluids. Its operations are divided into two primary segments: Industrial Precision Solutions and Advanced Technology Solutions. These segments cater to a broad range of industries, including packaging, electronics, and consumer goods. With a market cap of approximately $13.35B, Nordson is committed to innovation and quality, positioning itself as a vital player in the industrial machinery sector.
Hillenbrand, Inc. Overview
Hillenbrand, Inc. (HI), established in 1906 and based in Batesville, Indiana, operates as a diversified industrial company. It comprises three segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville, which focuses on funeral service products. Hillenbrand designs and manufactures a variety of process and material handling equipment for industries such as food, pharmaceuticals, and automotive. With a market cap of around $2.24B, the company emphasizes operational excellence and customer service, thereby enhancing its competitive edge in the industrial sector.
Key similarities and differences
Both Nordson and Hillenbrand operate within the industrial machinery sector, providing specialized equipment to diverse industries. However, Nordson primarily focuses on dispensing and application technologies, while Hillenbrand offers a wider range of solutions, including funeral service products. This differentiation in product offerings highlights their unique market positions and target audiences.
Income Statement Comparison
The following table compares the income statements of Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) for the most recent fiscal year.
| Metric | Nordson Corporation (NDSN) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Market Cap | 13.35B | 2.24B |
| Revenue | 2.69B | 2.67B |
| EBITDA | 810.58M | 230.60M |
| EBIT | 674.41M | 92.10M |
| Net Income | 467.28M | 43.10M |
| EPS | 8.17 | 0.74 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, Nordson Corporation experienced a revenue increase to 2.69B, up from 2.63B the previous year, indicating steady growth. In contrast, Hillenbrand’s revenue slightly decreased from 3.18B to 2.67B, highlighting challenges. Nordson’s EBITDA margin improved, reflecting better operational efficiency, while Hillenbrand’s margins contracted, resulting in a notable drop in net income. Overall, Nordson demonstrates resilience and effective cost management, while Hillenbrand needs to address its declining revenue and profitability to regain stability.
Financial Ratios Comparison
The following table provides a comparative analysis of the most recent financial ratios for Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI). This overview will help investors gauge the financial health and operational efficiency of these companies.
| Metric | NDSN | HI |
|---|---|---|
| ROE | 15.94% | 3.66% |
| ROIC | 9.65% | -32.60% |
| P/E | 30.56 | -9.27 |
| 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 | 38.67% | 39.25% |
| Interest Coverage | 7.58 | 0.55 |
| Asset Turnover | 0.45 | 0.60 |
| Fixed Asset Turnover | 4.21 | 7.80 |
| Payout Ratio | 34.55% | -121.69% |
| Dividend Yield | 1.13% | 3.32% |
Interpretation of Financial Ratios
Analyzing the ratios, Nordson Corporation shows strong profitability with a ROE of 15.94% and a solid current ratio of 2.41, indicating good liquidity. In contrast, Hillenbrand, Inc. faces significant challenges, reflected in its negative ROIC and P/E ratios, suggesting operational inefficiencies and potential concerns about profitability. Investors should be cautious, especially regarding Hillenbrand’s high debt levels and negative metrics.
Dividend and Shareholder Returns
Nordson Corporation (NDSN) consistently pays dividends, with a payout ratio of approximately 34.5% and a dividend yield of 1.13%. The annual dividend per share has shown a positive trend. Additionally, share buybacks are in place, enhancing shareholder returns. Alternatively, Hillenbrand, Inc. (HI) does not currently pay dividends, likely due to reinvestment strategies and a focus on growth, although it conducts share buybacks. This strategic approach could support long-term value creation but carries risks related to cash flow sustainability.
Strategic Positioning
In the industrial machinery sector, Nordson Corporation (NDSN) commands a significant market share with its diverse offerings in adhesive and fluid dispensing systems, positioning itself as a leader in technology and innovation. Hillenbrand, Inc. (HI) competes closely, leveraging its diversified segments to address various industrial needs. However, both companies face competitive pressure from emerging technologies and alternative solutions, necessitating continuous adaptation and innovation to maintain their market positions.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) over the past year, highlighting significant price dynamics and trading patterns.
Trend Analysis
Nordson Corporation (NDSN) Over the past year, NDSN has experienced a price change of -4.83%, indicating a bearish trend. The stock has demonstrated acceleration in its downward trajectory, with notable price fluctuations, reaching a high of 278.89 and a low of 176.73. The standard deviation of 23.83 suggests considerable volatility in the stock price.
In the recent period from September 14, 2025, to November 30, 2025, NDSN showed a positive price change of 6.49%, with a standard deviation of 4.19. This indicates a slight recovery, yet the overall trend remains bearish due to the longer-term decline.
Hillenbrand, Inc. (HI) HI has faced a more severe price change of -29.48% over the past year, also indicating a bearish trend with acceleration. The stock has fluctuated between a high of 50.29 and a low of 18.75, with a standard deviation of 9.44, reflecting significant price volatility.
Recently, from September 14, 2025, to November 30, 2025, HI’s price rebounded with a change of 29.59%. The standard deviation of 3.16 during this period suggests lower volatility compared to its overall performance, but the long-term bearish trend remains a concern.
In summary, both stocks are currently under bearish trends, with NDSN showing minor recovery in the short term, while HI has faced substantial declines overall. Investors should proceed with caution and consider the volatility and trend directions when evaluating potential investments in these companies.
Analyst Opinions
Recent recommendations for Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) indicate a consensus rating of B+. Analysts highlight strong performance in return on assets (5) and discounted cash flow (4) for both companies. However, concerns exist regarding their price-to-earnings (2) and debt-to-equity (1) ratios. Notably, analysts suggest that while both stocks are relatively stable, they may not provide explosive growth potential in the near term. Overall, the consensus leans towards a cautious hold for the current year.
Stock Grades
In the world of trading, stock ratings can provide valuable insights for investors. Here are the most recent grades for the selected companies.
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 |
Overall, the trend for Nordson Corporation shows a consistent positive outlook from analysts, particularly with recent upgrades to “Outperform” and “Buy” ratings. Conversely, Hillenbrand, Inc. exhibits a mixed sentiment, with some downgrades indicating caution in the market.
Target Prices
Reliable target price data indicates that analysts have set clear expectations for the stocks of Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Nordson Corporation | 285 | 240 | 263 |
| Hillenbrand, Inc. | 32 | 32 | 32 |
For Nordson Corporation, the consensus target price of 263 suggests a potential upside from the current price of 237.66. Hillenbrand, Inc.’s target price matches its current price of 31.84, indicating a stable outlook from analysts.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI) based on their most recent financial data.
| Criterion | Nordson Corporation (NDSN) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Diversification | High, with varied product lines in industrial machinery | Moderate, operates in diverse segments but limited focus |
| Profitability | Net profit margin: 17.37% | Net profit margin: 2.00% |
| Innovation | Strong R&D investments | Moderate innovation focus |
| Global presence | Operates globally | Strong in North America, limited global reach |
| Market Share | Significant in machinery | Smaller market share in specific niches |
| Debt level | Debt-to-equity ratio: 0.79 | Debt-to-equity ratio: 1.12 |
Key takeaways indicate that Nordson Corporation exhibits stronger profitability and diversification compared to Hillenbrand, which has a higher debt level and lower profitability. This suggests that NDSN may be a more stable investment option.
Risk Analysis
The following table outlines the key risks associated with Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI), helping investors understand the potential challenges they may face.
| Metric | Nordson Corporation (NDSN) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face varying levels of risk, with Hillenbrand, Inc. exhibiting higher operational and market risks. It is crucial to remain vigilant, as economic fluctuations and regulatory changes can significantly impact performance. For instance, Hillenbrand’s recent challenges in profitability highlight the need for careful monitoring.
Which one to choose?
When comparing Nordson Corporation (NDSN) and Hillenbrand, Inc. (HI), both companies hold a rating of B+, indicating solid performance. NDSN shows a strong gross profit margin of 55.2% and a net profit margin of 17.4%, suggesting effective cost management. In contrast, HI has lower margins, with a gross profit margin of 33.7% and a net profit margin of only 1.6%, indicating potential struggles in profitability.
In terms of stock performance, NDSN has experienced a bearish trend with a -4.83% price change over the last year, while HI has faced a sharper decline of -29.48%. Analysts express cautious optimism regarding NDSN due to its robust fundamentals, while HI’s performance remains inconsistent.
Investors focused on growth may prefer NDSN, while those prioritizing dividend yields could find HI appealing. However, NDSN’s stronger financial metrics and stability suggest it may be the more prudent choice for risk-averse investors.
Specific risks for both companies include market dependence and competition challenges.
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:
