SUMITOMO HEAVY/ADR (OTCMKTS:SOHVY) and IHI CORP/ADR (OTCMKTS:IHICY) are both mid-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Profitability

This table compares SUMITOMO HEAVY/ADR and IHI CORP/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SUMITOMO HEAVY/ADR N/A N/A N/A
IHI CORP/ADR 0.69% 3.32% 0.71%

Risk & Volatility

SUMITOMO HEAVY/ADR has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, IHI CORP/ADR has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for SUMITOMO HEAVY/ADR and IHI CORP/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SUMITOMO HEAVY/ADR 0 0 0 0 N/A
IHI CORP/ADR 0 0 0 0 N/A

Earnings & Valuation

This table compares SUMITOMO HEAVY/ADR and IHI CORP/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SUMITOMO HEAVY/ADR $7.14 billion 0.51 $324.47 million $0.66 11.24
IHI CORP/ADR $14.36 billion 0.39 $74.61 million $0.16 57.13

SUMITOMO HEAVY/ADR has higher earnings, but lower revenue than IHI CORP/ADR. SUMITOMO HEAVY/ADR is trading at a lower price-to-earnings ratio than IHI CORP/ADR, indicating that it is currently the more affordable of the two stocks.

Dividends

SUMITOMO HEAVY/ADR pays an annual dividend of $0.07 per share and has a dividend yield of 0.9%. IHI CORP/ADR pays an annual dividend of $0.05 per share and has a dividend yield of 0.5%. SUMITOMO HEAVY/ADR pays out 10.6% of its earnings in the form of a dividend. IHI CORP/ADR pays out 31.3% 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. SUMITOMO HEAVY/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

SUMITOMO HEAVY/ADR beats IHI CORP/ADR on 6 of the 11 factors compared between the two stocks.

About SUMITOMO HEAVY/ADR

Sumitomo Heavy Industries, Ltd. develops, manufactures, and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Asia, Europe, and the United States. Its Machinery Components segment offers power transmission and control equipment, including drives, compact gear motors, motion control drives, and gearboxes. The company's Precision Machinery segment provides injection molding machines, transfer molding presses, cryocoolers, cryopumps, precision positioning equipment, laser annealing machines, laser drills, control systems, motion components, ion implanters, rolls for metal rolling, surface grinding machines, coolant systems, and extrusion coating lines for smartphone and semiconductor manufacturing industries. Its Construction Machinery segment offers hydraulic excavators and road machinery. The company's Industrial Machinery offers cyclotrons for positron emission tomography, positron emission tomography tracer production systems, proton therapy systems, vacuum coating equipment, forging presses, lifting magnets, steam turbines, process pumps, material handling systems, logistics systems, parking systems, non-destructive inspections, and forklifts. Its Ships segment provides oil tankers. The company's Environmental Facilities & Plants segment offers circulating fluidized bed boilers, rotary kiln-type recycling facilities, electrostatic precipitators, evaporation and crystallization facilities, spinning machines, clean room systems, dust collectors, distillation and extraction plants, reactor vessels, mixing vessels, industrial waste water treatment facilities, water and sewage treatment systems, and food and beverage manufacturing facilities. Its Others segment provides IT solutions and security services. The company was founded in 1888 and is headquartered in Tokyo, Japan.

About IHI CORP/ADR

IHI Corporation, together with its subsidiaries, manufactures and sells machinery and equipment in Japan, the Americas, Europe, the Asia Pacific, and internationally. It offers boilers, components for nuclear power plants, facilities for nuclear fuel cycle plants, gas turbine/diesel engines/gas engines, environment responsive systems, and lithium-ion batteries. The company also provides LNG receiving terminals and storage tanks; equipment for plants and reactors; and engineering, procurement, construction, and start-up services for process and pharmaceutical plants. In addition, it offers bridges, water gates, and steel structures; shield tunneling machines, concrete construction materials, automated people movers, light rail transit, and other products; and security and environmental monitoring systems, as well as constructs and refurbishes offshore units and marine structures. Further, the company provides air and process gas compressors, separators, dehydrators, filters, and cryogenic products; turbochargers for vehicles and ships; parking and logistics systems, materials handling equipment, and construction machinery; steelmaking equipment, such as industrial furnaces and stepping cylinders; thermal and surface treatment equipment, factory automation systems, slitters, rubber and film calender lines, pulp and paper machinery, lubricating systems, and grid scale energy storage systems; and agricultural machines, motors, and lawn mowers. Additionally, it offers aero engines and air traffic control systems; and rockets, rocket and satellite propulsion systems, systems for satellites, space station-related equipment, ground test facilities, sample containers, etc., as well as engage in real estate rental and sales business. The company was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd. and changed its name to IHI Corporation in 2007. IHI Corporation was founded in 1853 and is headquartered in Tokyo, Japan.

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