Sumitomo (OTCMKTS:SSUMY – Get Free Report) and Great Elm Group (NASDAQ:GEG – Get Free Report) are both multi-sector conglomerates companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Insider & Institutional Ownership
52.8% of Great Elm Group shares are held by institutional investors. 49.7% of Great Elm Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Sumitomo and Great Elm Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sumitomo | $48.74 billion | 0.97 | $3.96 billion | $3.31 | 11.89 |
| Great Elm Group | $16.32 million | 4.23 | $12.89 million | ($0.82) | -2.68 |
Sumitomo has higher revenue and earnings than Great Elm Group. Great Elm Group is trading at a lower price-to-earnings ratio than Sumitomo, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for Sumitomo and Great Elm Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sumitomo | 0 | 1 | 0 | 0 | 2.00 |
| Great Elm Group | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Sumitomo and Great Elm Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sumitomo | 8.19% | 12.21% | 4.75% |
| Great Elm Group | -100.48% | -54.63% | -25.87% |
Volatility & Risk
Sumitomo has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Great Elm Group has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
Summary
Sumitomo beats Great Elm Group on 9 of the 12 factors compared between the two stocks.
About Sumitomo
Sumitomo Corporation engages in general trading business worldwide. It operates through six segments: Metal Products; Transportation & Construction Systems; Infrastructure; Media & Digital; Living Related & Real Estate; and Mineral Resources, Energy, Chemical & Electronics. The company provides steel sheets and tubular products; and manufactures, leases, sells, services, and finances ships, aircrafts, motor vehicles, construction equipment, and components and parts. It is involved in the development of renewable energy projects comprising power generation and power plant engineering, procurement, and construction activities; electricity retail; industrial facilities and equipment, water, transportation systems and infrastructure, airports, smart city project, environmental solutions, and storage battery businesses; development and operation of industrial parks; arranging insurance; and provision of logistics services. In addition, the company engages in the cable television, 5G related technologies, programming distribution, movies, digital media and video content, TV shopping, and e-commerce businesses; cell phone, ICT platform, digital solution, and venture capital businesses; provision of smart communications infrastructure; operation of food supermarkets and drugstore chains; trade of cement and building materials; and real estate businesses. Further, it develops and trades in coal, iron ore, manganese, uranium, non-ferrous and precious metals, petroleum, natural gas and liquefied natural gas, and commodity derivative transactions; trades in non-ferrous metal products, liquefied petroleum gas, storage batteries, carbon products, plastics, organic and inorganic chemicals, silicon wafers, LEDs, pharmaceuticals, agricultural chemicals, household insecticides, fertilizers, and veterinary drugs; engages in the investing activities; and provides electronics manufacturing services. Sumitomo Corporation was incorporated in 1919 and is headquartered in Tokyo, Japan.
About Great Elm Group
Great Elm Group, Inc. operates as a asset management company. The company engages in credit, real estate, and finance businesses. It is also involved in business development related activities and offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was incorporated in 1994 and is headquartered in Waltham, Massachusetts.
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