Analyzing Rectitude (NASDAQ:RECT) and Hillman Solutions (NASDAQ:HLMN)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hillman Solutions	$1.48 billion	1.33	-$9.59 million	$0.04	250.06
Rectitude	$30.69 million	3.17	$2.49 million	N/A	N/A

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

Analyst Recommendations

This is a breakdown of current recommendations for Hillman Solutions and Rectitude, as reported by MarketBeat.

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

Hillman Solutions presently has a consensus price target of $14.00, indicating a potential upside of 40.00%. Given Hillman Solutions’ stronger consensus rating and higher possible upside, research analysts clearly believe Hillman Solutions is more favorable than Rectitude.

Profitability

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

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

Institutional and Insider Ownership

98.1% of Hillman Solutions shares are held by institutional investors. 5.1% of Hillman Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

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

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.

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.