Halma and Diploma are two stocks from the FTSE 100 which have a long history of consistent returns. These are both growth stocks and are not as popular as most other FTSE 100 stocks.
Most people think about tech giants, oil majors, and other big names when they discuss the FTSE 100. However, these two stocks also have a strong history of growth, earnings, and stock price appreciation.
Both the Halma (HLMA) and Diploma (DPLM) are part of the FTSE 100 and have a forward P/E of 30. In addition, the ROE of both stocks is also above 15%. More importantly, both stocks had positive share price growth for around 13 out of the last 15 years.
Halma is a group of companies which makes products for life protection and hazard detection. The company has a market cap of almost 12.4 billion, making it twice as big as the Diploma.
If we talk about performance, the share price of Halma has gone up by 338% in the last 10 years. That's quite an impressive feat, which can even rival the top tech giants.
Recently, Halma also acquired Brownline for around 150 million. According to UBS, this will help them to enhance their portfolio of environmental technologies.
The Diploma (DPLM) is involved in supplying special technical services and products. The market cap of Diploma is around 7.2 billion, while the stock price has jumped by 25% in the last year.
In the last 10 years, the share price of Diploma has increased by almost 663%. So, even when we compare it with Halma, the clear winner is Diploma (DPLM).
Even the PEG ratio of Diploma is reasonable, which makes it a solid contender in the FTSE 100. In addition, the earnings growth is also way higher than the revenue growth, which is also a good thing.
The performance of Diploma is even better than the FTSE 100 index, which makes it such an impressive growth stock in the UK market.