Critical Survey: Mitsubishi (OTCMKTS:MSBHF) versus Marubeni (OTCMKTS:MARUY)

Mitsubishi (OTCMKTS:MSBHF) and Marubeni (OTCMKTS:MARUY) are both large-cap multi-sector conglomerates companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

0.1% of Marubeni shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Mitsubishi and Marubeni’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitsubishi $121.55 billion 0.19 $1.62 billion N/A N/A
Marubeni $59.73 billion 0.24 $2.12 billion $12.02 6.88

Marubeni has lower revenue, but higher earnings than Mitsubishi.

Risk and Volatility

Mitsubishi has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Marubeni has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Mitsubishi and Marubeni’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitsubishi 1.68% 3.52% 1.22%
Marubeni 4.05% 15.23% 4.20%

Analyst Recommendations

This is a summary of recent ratings for Mitsubishi and Marubeni, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitsubishi 0 1 1 0 2.50
Marubeni 0 0 1 0 3.00

Summary

Marubeni beats Mitsubishi on 8 of the 10 factors compared between the two stocks.

Mitsubishi Company Profile

Mitsubishi Corporation engages in the natural gas, industrial materials, petroleum and chemicals, mineral resources, industrial infrastructure, automotive and mobility, food industry, consumer industry, power solution, and urban development businesses worldwide. The company's Natural Gas segment engages in the natural gas/oil exploration, production, and development business; and liquified natural gas business. Its Industrial Materials segment invests in, develops, and trades in carbon, steel products, and performance materials for automobile and mobility, construction, and finance industries. The company's Petroleum & Chemicals segment invests in, develops, and trades in crude oil and oil products, LPG, ethylene, methanol, salt, ammonia, plastics, and fertilizers. Its Mineral Resources segment invests in and develops metallurgical coal, copper, iron ore, and aluminum resources. The company's Industrial Infrastructure segment trades in energy infrastructure, industrial plants, machinery tools, agricultural machinery, mining machinery, elevators, escalators, ships, and aerospace related equipment. Its Automotive & Mobility segment produces, finances, and sells passenger and commercial cars; and mobility services. The company's Food Industry segment develops and sells food resources, fresh foods, consumer goods, and food ingredients. Its Consumer Industry segment engages in food retail, apparel, healthcare, and logistics and distribution businesses. The company's Power Solution segment generates, transmits, and retails power; supplies power generating and transmitting products and equipment; develops and sells lithium ion; develops hydrogen; and offers battery services. Its Urban Development segment engages in the urban infrastructure development, operation, and management businesses. Mitsubishi Corporation was incorporated in 1950 and is headquartered in Tokyo, Japan.

Marubeni Company Profile

Marubeni Corp. engages in the business of importing and exporting services. It operates through the following segments: Food & Consumer Products; Chemical & Forest Products; Energy & Metals; Transportation & Industrial Machinery; Power Projects & Plant; and Others. The Food & Consumer Products segment engages in the manufacture and trade of all food products including feed grains, soybeans, wheat, sugar, processed foods, beverages, and their raw materials, foodstuffs for professional use, and agricultural, seafood and livestock products. The Chemical & Forest Products segment merchandises petrochemicals, electronic materials, and functional chemicals, and also handles agricultural materials including pesticides and fertilizers. The Energy & Metals segment covers the trade of petroleum and gas, raw materials development and gas station retail, non-iron light metals; as well as steel products such as steel sheets, tubes other steel products. The Transportation & Industrial Machinery engages in the export, import, wholesale and retail of transport equipment; as well as the navigation of cargo boats, tankers, and LNG ships. The Power Projects & Plant segment engages in the development,

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