Hitachi (OTCMKTS: HTHIY) and Jacobs Engineering Group (NYSE:JEC) are both multi-sector conglomerates companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.
Insider and Institutional Ownership
0.3% of Hitachi shares are owned by institutional investors. Comparatively, 82.2% of Jacobs Engineering Group shares are owned by institutional investors. 0.7% of Jacobs Engineering Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Hitachi has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Jacobs Engineering Group has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Hitachi and Jacobs Engineering Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jacobs Engineering Group||0||4||10||0||2.71|
Jacobs Engineering Group has a consensus price target of $74.50, suggesting a potential upside of 22.80%. Given Jacobs Engineering Group’s higher probable upside, analysts clearly believe Jacobs Engineering Group is more favorable than Hitachi.
Valuation & Earnings
This table compares Hitachi and Jacobs Engineering Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hitachi||$81.81 billion||0.44||$2.15 billion||$4.41||16.86|
|Jacobs Engineering Group||$10.02 billion||0.86||$293.72 million||$3.24||18.73|
Hitachi has higher revenue and earnings than Jacobs Engineering Group. Hitachi is trading at a lower price-to-earnings ratio than Jacobs Engineering Group, indicating that it is currently the more affordable of the two stocks.
This table compares Hitachi and Jacobs Engineering Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jacobs Engineering Group||2.30%||8.59%||4.72%|
Hitachi pays an annual dividend of $0.51 per share and has a dividend yield of 0.7%. Jacobs Engineering Group pays an annual dividend of $0.60 per share and has a dividend yield of 1.0%. Hitachi pays out 11.6% of its earnings in the form of a dividend. Jacobs Engineering Group pays out 18.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Jacobs Engineering Group beats Hitachi on 10 of the 15 factors compared between the two stocks.
Hitachi Company Profile
Hitachi, Ltd. provides information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and ecofriendly systems, other products, and financial services worldwide. The company's Information & Telecommunication Systems segment offers systems integration, consulting, and cloud services; and servers, storage products, software, telecommunications and network equipment, and ATMs. Its Social Infrastructure & Industrial Systems segment provides industrial machinery and plants, elevators, escalators, and railway systems; and thermal, nuclear, and renewable energy power generation systems, and transmission and distribution systems. The company's Electronic Systems & Equipment segment offers semiconductor processing equipment, test and measurement equipment, industrial products, medical electronics equipment, and power tools. Its Construction Machinery segment provides hydraulic excavators, wheel loaders, and mining machinery. The company's High Functional Materials & Components segment offers semiconductor and display related materials, circuit boards and materials, automotive parts, energy storage devices, specialty steels, magnetic materials and components, casting components and materials, and wires and cables. Its Automotive Systems segment provides engine management, electric power train, drive control, and car information systems. The company's Smart Life & Ecofriendly Systems segment offers air-conditioning equipment, room air conditioners, refrigerators, and washing machines. Its Others segment provides optical disk drives, property management, and others. The company's Financial Services segment offers leasing and loan guarantee services. Hitachi, Ltd. has collaboration with the University of Utah Health. The company was founded in 1910 and is headquartered in Tokyo, Japan.
Jacobs Engineering Group Company Profile
Jacobs Engineering Group Inc. is a technical professional services company. The Company provides a range of technical, professional and construction services to industrial, commercial and governmental clients. The Company’s services include Project Services; Process, Scientific, and Systems Consulting Services; Construction Services, and Operations and Maintenance Services. It operates four lines of business (LOBs): Petroleum and Chemicals; Buildings and Infrastructure; Aerospace and Technology, and Industrial. It caters its services to various sectors, such as oil and gas exploration, production and refining; chemicals and polymers; programs for various national governments, including aerospace, defense, and environmental programs; buildings; infrastructure and telecommunications; mining and minerals; pharmaceuticals and biotechnology; power; pulp and paper; technology and manufacturing, and food and consumer products.
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