MITSUBISHI CORP/S (OTCMKTS:MSBHY) and Reliance Steel & Aluminum (NYSE:RS) are both multi-sector conglomerates companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
This is a summary of current ratings and target prices for MITSUBISHI CORP/S and Reliance Steel & Aluminum, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Reliance Steel & Aluminum||0||6||4||0||2.40|
MITSUBISHI CORP/S pays an annual dividend of $1.91 per share and has a dividend yield of 3.4%. Reliance Steel & Aluminum pays an annual dividend of $2.00 per share and has a dividend yield of 2.7%. MITSUBISHI CORP/S pays out 29.3% of its earnings in the form of a dividend. Reliance Steel & Aluminum pays out 36.8% 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. Reliance Steel & Aluminum has increased its dividend for 7 consecutive years. MITSUBISHI CORP/S is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
0.1% of MITSUBISHI CORP/S shares are held by institutional investors. Comparatively, 83.2% of Reliance Steel & Aluminum shares are held by institutional investors. 3.2% of Reliance Steel & Aluminum shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares MITSUBISHI CORP/S and Reliance Steel & Aluminum’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Reliance Steel & Aluminum||7.66%||13.58%||8.11%|
Earnings and Valuation
This table compares MITSUBISHI CORP/S and Reliance Steel & Aluminum’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MITSUBISHI CORP/S||$69.85 billion||0.63||$5.05 billion||$6.51||8.54|
|Reliance Steel & Aluminum||$9.72 billion||0.54||$613.40 million||$5.44||13.65|
MITSUBISHI CORP/S has higher revenue and earnings than Reliance Steel & Aluminum. MITSUBISHI CORP/S is trading at a lower price-to-earnings ratio than Reliance Steel & Aluminum, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
MITSUBISHI CORP/S has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Reliance Steel & Aluminum has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Reliance Steel & Aluminum beats MITSUBISHI CORP/S on 10 of the 16 factors compared between the two stocks.
About MITSUBISHI CORP/S
Mitsubishi Corporation operates in industrial finance, energy, metals, machinery, chemicals, and daily living essentials worldwide. The company's Global Environmental & Infrastructure Business segment conducts environmental and infrastructure projects, related trading operations, and other activities in power generation, water, transportation, and other infrastructure fields. This segment also manufactures and sells lithium-ion batteries for electric vehicles. Its Industrial Finance, Logistics & Development segment offers corporate investment, leasing, real estate/urban development, and logistics services. The company's Energy Business segment explores, develops, and produces oil and natural gas; invests in natural gas liquefaction projects; trades in crude oil, petroleum products, carbon materials and products, liquefied natural gas, and liquefied petroleum gas; and plans and develops new energy business. Its Metals segment invests in, develops, and trades in steel sheets and thick plates; steel raw materials, including coking coal and iron ore; and non-ferrous raw materials and products, such as copper and aluminum. The company's Machinery segment invests in, finances, and trades in machine tools, agricultural machinery, construction machinery, mining machinery, elevators, escalators, ships, aerospace-related equipment, and motor vehicles. Its Chemicals segment invests in, develops, and trades in basic materials comprising ethylene, methanol, and salt produced from crude oil, natural gas, minerals, plants, marine resources, and others, as well as plastics, electronic materials, food ingredients, fertilizers, and fine chemicals. The company's Living Essentials segment provides products and services, as well as develops businesses and invests in various fields consisting of food products and food, apparel, everyday products, healthcare, distribution, and retail. Mitsubishi Corporation was founded in 1950 and is headquartered in Tokyo, Japan.
About Reliance Steel & Aluminum
Reliance Steel & Aluminum Co. operates as a metals service center company in the United States and internationally. The company provides steel, aluminum, stainless, and specialty metals and related processing services to customers in various industries, such as infrastructure and energy; fabricates steel and aluminum products; and provides various precision fabrication services, including laser cutting, shearing, computer numerated control (CNC) punching, and CNC forming and rolling, as well as welding, assembly, painting, inventory management, and engineering expertise. It also manufactures metal parts that have applications in various end markets, including industrial machinery, automotive, aerospace, sugar products, and consumer electronics manufacturers. In addition, it distributes and processes carbon, alloy and stainless steel pipe, tubing, and bar products. The company sells directly to large original equipment manufacturer customers, as well as to small machine shops and fabricators. Reliance Steel & Aluminum Co. was founded in 1939 and is headquartered in Los Angeles, California.
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