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DHIL vs HPS

DHIL
Diamond Hill Investment Group, Inc.
BULLISH
Price
$174.99
Market Cap
$473.3M
Sector
Financial Services
AI Confidence
75%
HPS
John Hancock Preferred Income Fund III
NEUTRAL
Price
$14.55
Market Cap
$468.1M
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
DHIL
9.78
HPS
12.44
Forward P/E
DHIL
--
HPS
--
P/B Ratio
DHIL
2.68
HPS
1.01
P/S Ratio
DHIL
3.22
HPS
9.13
EV/EBITDA
DHIL
10.71
HPS
--

Profitability

Gross Margin
DHIL
43.92%
HPS
100.0%
Operating Margin
DHIL
24.84%
HPS
88.5%
Profit Margin
DHIL
33.15%
HPS
73.63%
ROE
DHIL
29.12%
HPS
8.14%
ROA
DHIL
9.8%
HPS
3.82%

Growth

Revenue Growth
DHIL
-6.6%
HPS
1.1%
Earnings Growth
DHIL
25.5%
HPS
-5.1%

Financial Health

Debt/Equity
DHIL
0.04
HPS
0.59
Current Ratio
DHIL
1.83
HPS
2.82
Quick Ratio
DHIL
1.74
HPS
1.48

Dividends

Dividend Yield
DHIL
3.43%
HPS
9.07%
Payout Ratio
DHIL
33.5%
HPS
112.82%

AI Verdict

DHIL BULLISH

DHIL exhibits strong fundamental health with a Piotroski F-Score of 7/9 and an exceptionally low Debt/Equity ratio of 0.04. The company is significantly undervalued from a multiples perspective, trading at a P/E of 9.78 and a PEG of 0.55, well below sector averages. While revenue growth is currently negative (-6.60% YoY), earnings growth remains robust at 25.50%, suggesting high operational efficiency. The current price of $174.99 is slightly above the Graham Number ($162.06) but represents a deep discount to the growth-based intrinsic value of $528.05.

Strengths
Strong financial health (Piotroski 7/9)
Extremely low leverage (Debt/Equity 0.04)
High profitability (ROE 29.12%, Profit Margin 33.15%)
Risks
Negative revenue growth (-6.60% YoY, -18.70% Q/Q)
Bearish technical trend (10/100 score)
Weak insider sentiment (40/100 score)
HPS NEUTRAL

HPS presents as a stable but stagnant income vehicle, characterized by a Piotroski F-Score of 6/9 indicating stable financial health. While the Graham Number of $19.45 suggests a defensive undervaluation, this is countered by a low growth-based intrinsic value of $8.19 and a bearish technical trend. The primary concern is a dividend payout ratio of 112.82%, which indicates the current 9.07% yield is unsustainable and being funded by capital rather than earnings. Overall, the fund is a classic yield trap with strong margins but declining earnings growth.

Strengths
Strong profit margins (73.63%) and operating margins (88.50%)
Trading near book value (P/B 1.01)
Low Debt/Equity ratio (0.59) compared to sector average (1.38)
Risks
Unsustainable dividend payout ratio (112.82%)
Negative earnings growth (-5.10% YoY and -4.80% Q/Q)
Stagnant revenue growth (1.10% YoY)

Compare Another Pair

DHIL vs HPS: Head-to-Head Comparison

This page compares Diamond Hill Investment Group, Inc. (DHIL) and John Hancock Preferred Income Fund III (HPS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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