Siemens (OTCMKTS:SIEGY) and Hitachi (OTCMKTS:HTHIY) Head to Head Review

Hitachi (OTCMKTS:HTHIY) and Siemens (OTCMKTS:SIEGY) are both large-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

0.3% of Hitachi shares are owned by institutional investors. Comparatively, 0.7% of Siemens shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Hitachi pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. Siemens pays an annual dividend of $2.33 per share and has a dividend yield of 1.5%. Hitachi pays out 19.8% of its earnings in the form of a dividend. Siemens pays out 39.5% 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Hitachi and Siemens, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitachi	0	0	1	2	3.67
Siemens	1	5	4	1	2.45

Profitability

This table compares Hitachi and Siemens’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitachi	7.30%	12.07%	5.43%
Siemens	9.79%	11.13%	4.75%

Earnings & Valuation

This table compares Hitachi and Siemens”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitachi	$70.33 billion	2.30	$5.30 billion	$1.16	30.70
Siemens	$87.26 billion	2.78	$10.65 billion	$5.90	26.32

Siemens has higher revenue and earnings than Hitachi. Siemens is trading at a lower price-to-earnings ratio than Hitachi, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Hitachi has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Siemens has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Summary

Siemens beats Hitachi on 9 of the 15 factors compared between the two stocks.

About Hitachi

Hitachi, Ltd. provides digital system and services, green energy and mobility, and connective industry solutions in Japan and internationally. It operates through seven segments: Digital Systems & Services, Green Energy & Mobility, Connective Industries, Automotive System, Hitachi Construction Machinery, Hitachi Metals, and Others. The company offers system integration, consulting, cloud services, storage, servers, and ATMs; finance solutions, social infrastructure information systems, government and public corporation information system, big data and AI, and IoT and data management; and IT products. It also operates power grids, nuclear and clear energy, renewable energy; provides energy management services and distributed power source solutions; semiconductors; elevators and escalators; air conditioners; industrial equipment; and railway systems. In addition, the company offers medical equipment for radiation therapy, In-vitro diagnosis, and regenerative medicines; automotive systems; home appliances; and water treatment solutions for water supply and sewage infrastructure, industrial water treatment, seawater desalination, and water recycling, as well as maintenance and repair services. Further, it hydraulic excavators, wheel loaders, mining machinery, construction solutions, and mine management systems. Additionally, the company offers specialty steel, functional components and equipment, power electronic and magnetic materials, wires, and cable and related products; optical disk drives; and property management services. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan.

About Siemens

Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS) segments. The Digital Industries segment provides automation systems and software for factories, numerical control systems, servo motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and the Mendix cloud-native low-code application development platform. The Smart Infrastructure segment offers products, systems, solutions, services, and software to support sustainable transition in energy generation from fossil and renewable sources; sustainable buildings and communities; and buildings, electrification, and electrical products. The Mobility segment provides rail passenger and freight transportation, such as vehicles, trams and light rail, and commuter trains, as well as trains and passenger coaches; locomotives and solutions for automated transportation; products and solutions for rail automation; electrification products; maintenance and digital services; and digital and cloud-based solutions, and related services. The Siemens Healthineers segment develops, manufactures, and sells various diagnostic and therapeutic products and services; and provides clinical consulting and training services. The SFS segment offers debt and equity investments; leasing, lending, and working capital, structured, equipment, and project financing; and financial advisory services. Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.