Analyzing Mitsui & Co Ltd (MITSY) and Sunoco (SUN)

Mitsui & Co Ltd (OTCMKTS:MITSY) and Sunoco (NYSE:SUN) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

0.1% of Mitsui & Co Ltd shares are owned by institutional investors. Comparatively, 28.5% of Sunoco shares are owned by institutional investors. 0.0% of Mitsui & Co Ltd shares are owned by insiders. 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.

Profitability

This table compares Mitsui & Co Ltd and Sunoco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitsui & Co Ltd 7.04% 9.31% 3.50%
Sunoco 0.58% 35.57% 7.39%

Dividends

Mitsui & Co Ltd pays an annual dividend of $7.26 per share and has a dividend yield of 2.2%. Sunoco pays an annual dividend of $3.30 per share and has a dividend yield of 11.6%. Mitsui & Co Ltd pays out 16.9% of its earnings in the form of a dividend. Sunoco pays out 144.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sunoco has increased its dividend for 2 consecutive years. Sunoco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Mitsui & Co Ltd has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Sunoco has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Valuation & Earnings

This table compares Mitsui & Co Ltd and Sunoco’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitsui & Co Ltd $44.18 billion 0.67 $3.77 billion $42.89 7.70
Sunoco $11.72 billion 0.24 $149.00 million $2.29 12.42

Mitsui & Co Ltd has higher revenue and earnings than Sunoco. Mitsui & Co Ltd is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Mitsui & Co Ltd and Sunoco, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitsui & Co Ltd 0 0 0 0 N/A
Sunoco 1 9 3 0 2.15

Sunoco has a consensus price target of $30.91, suggesting a potential upside of 8.64%. Given Sunoco’s higher probable upside, analysts plainly believe Sunoco is more favorable than Mitsui & Co Ltd.

Summary

Sunoco beats Mitsui & Co Ltd on 9 of the 16 factors compared between the two stocks.

Mitsui & Co Ltd Company Profile

Mitsui & Co., Ltd. operates as a general trading company worldwide. It engages in the export, import, wholesale, and retail of steel products; steel processing; mining and sale of iron ores; and sale and trading of non-ferrous scrap, alloys, and products. The company also invests in copper, nickel, coal, power generation, cobalt smelting, gas distribution, LNG terminal, deepwater drilling, cogeneration, truck leasing, shipping, passenger transport, methanol, crop protection, phosphorus ore, natural gas liquefaction, processed oil food, property management, healthcare staffing, mobile services, venture, cyber security, and private equity businesses. It also sells plants, electric power facility, transportation, construction, mining, and peripheral equipment, as well as machine tools and plastics; designs, builds, and operates wastewater treatment plants, and container and air cargo terminals; and imports and sells automobile and auto parts, helicopter, defense, and aerospace products. In addition, the company finances automobile and motorcycle; provides auto parts logistics services; leases and manages freightcar and locomotives; operates chemical tankers; produces salt; and sells solvents and coating materials, petroleum and crude oil, agricultural, marine, energy and base metal, canned and chilled foods, juice ingredient, coffee beans and roasted coffee, food and beverages, packaging materials, groceries, apparel and clothing, electronic devices and equipment, and oil and gas well tubular products. Further, it processes and sells woodchips; manufactures and sells industrial chemicals, fertilizers, saccharified, pharmaceuticals, feedstuff, and information and communication equipment; explores, develops, and produces oil and natural gas; and offers non life and life insurance agency, warehousing, grain merchandising, real estate asset management, water supply, and financing services. The company was founded in 1947 and is headquartered in Tokyo, Japan.

Sunoco Company Profile

Sunoco LP, together with its subsidiaries, engages in the wholesale distribution and retail sale of motor fuels primarily in the United States. The company operates through two segments, Wholesale and Retail. It serves convenience stores and commission agent locations, contracted independent convenience store operators, and other commercial customers. The company also distributes other petroleum products, including propane and lubricating oils; and leases or subleases real estate properties. As of December 31, 2017, it operated 1,348 convenience stores and fuel outlets offering merchandise, food service, motor fuel, and other services in approximately 20 states. Sunoco GP LLC serves as the general partner of the company. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in October 2014. Sunoco LP is headquartered in Dallas, Texas.

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