Sekisui House (OTCMKTS:SKHSY) & Sony (NYSE:SONY) Financial Survey

Sony (NYSE:SONY) and Sekisui House (OTCMKTS:SKHSY) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent recommendations for Sony and Sekisui House, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sony	0	3	2	0	2.40
Sekisui House	0	0	0	1	4.00

Sony presently has a consensus price target of $26.00, indicating a potential downside of 2.66%. Given Sony’s higher probable upside, equities analysts plainly believe Sony is more favorable than Sekisui House.

Insider and Institutional Ownership

14.1% of Sony shares are held by institutional investors. Comparatively, 0.0% of Sekisui House shares are held by institutional investors. 7.0% of Sony shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Sony and Sekisui House”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sony	$82.90 billion	1.90	-$2.16 billion	$1.12	23.85
Sekisui House	$28.07 billion	0.51	$1.56 billion	$2.52	8.78

Sekisui House has lower revenue, but higher earnings than Sony. Sekisui House is trading at a lower price-to-earnings ratio than Sony, indicating that it is currently the more affordable of the two stocks.

Dividends

Sony pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. Sekisui House pays an annual dividend of $0.68 per share and has a dividend yield of 3.1%. Sony pays out 13.4% of its earnings in the form of a dividend. Sekisui House pays out 27.0% 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.

Volatility and Risk

Sony has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Sekisui House has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Sony and Sekisui House’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sony	-1.54%	14.20%	7.69%
Sekisui House	6.15%	11.16%	4.87%

Summary

Sony beats Sekisui House on 11 of the 17 factors compared between the two stocks.

About Sony

Sony Group Corporation is a Japan-based global entertainment and technology company, founded in Tokyo in 1946 by Masaru Ibuka and Akio Morita. Initially known as Tokyo Tsushin Kogyo, the company adopted the name Sony in 1958. Sony’s businesses include video games and network services through PlayStation; music recording and publishing; film and television production and distribution; consumer electronics, including televisions and cameras; and imaging and sensing technologies, including image sensors.

About Sekisui House

Sekisui House, Ltd. is a Japan-based homebuilder established in 1960 and headquartered in Osaka. The company designs and builds detached houses, rental apartments and condominiums, serving both individual customers and institutional clients. Its services also include home remodeling, real estate brokerage and management, and the development of commercial and urban properties. Sekisui House operates primarily in Japan and has expanded internationally, including in North America and Australia. The company’s businesses span the housing lifecycle, from planning and construction to property management and renovation.