Shanghai Industrial (OTCMKTS:SGHIY) and Marubeni (OTCMKTS:MARUY) Financial Analysis

Shanghai Industrial (OTCMKTS:SGHIY) and Marubeni (OTCMKTS:MARUY) are both multi-sector conglomerates companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shanghai Industrial	N/A	N/A	N/A
Marubeni	7.04%	15.11%	6.20%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Shanghai Industrial and Marubeni, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shanghai Industrial	0	0	0	0	0.00
Marubeni	0	1	0	0	2.00

Volatility and Risk

Shanghai Industrial has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, Marubeni has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Dividends

Shanghai Industrial pays an annual dividend of $1.03 per share and has a dividend yield of 4.7%. Marubeni pays an annual dividend of $2.73 per share and has a dividend yield of 1.0%. Marubeni pays out 11.8% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.1% of Marubeni shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Shanghai Industrial and Marubeni”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shanghai Industrial	$3.71 billion	0.65	$359.94 million	N/A	N/A
Marubeni	$51.16 billion	0.85	$3.32 billion	$23.16	11.31

Marubeni has higher revenue and earnings than Shanghai Industrial.

Summary

Marubeni beats Shanghai Industrial on 9 of the 11 factors compared between the two stocks.

About Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.

About Marubeni

Marubeni Corporation engages in various business activities. It manufactures, wholesales, and retails apparel, footwear, home furnishing and sport goods, industrial and textile materials, tire and rubber materials, and household and nursing care products; develops uranium, nuclear fuel cycle, iron ore, coking coal, copper mines, and related equipment and services; smelts and refines aluminum and magnesium; leases temporary steel construction materials; explores for, develops, and produces oil and gas; manages infrastructure funds; and develops and manages real estate. The company also offers insurance, technical, ICT, and logistic services; agri-inputs; fertilizer and crop protection product contracting services; crop protection product formulations; wood chips, biomass fuels, pulp and waste papers, paper, paperboards, sanitary, and building and construction materials; engineering, procurement, and construction services; and operation and maintenance services. It trades in fertilizers, dairy, agricultural, and marine products; sugar, processed food, beverages raw materials, and commercial use food materials; grains, oilseeds, feed ingredients, compound feeds, fresh and processed meat, petrochemicals, plastics, salts, chlor-alkalis, life science products, electronic materials, fertilizer materials, and inorganic mineral resources and chemicals; steelmaking raw materials, ferroalloys, nonferrous metals, and steel products; cement and ingots related materials; and petroleum and LPG. The company engages in infrastructure; water; automotive finance; power generation; power service and retail; natural gas; hydrogen; and fuel ammonia businesses. It owns, purchases, operates, leases, sells, and charters aerospace and ship products; leases refrigerated trailers, commercial vehicles, and freight cars; and sells, trades in, leases, finances, and services construction and industrial machinery, and mobility products. The company was founded in 1858 and is based in Tokyo, Japan.