Shimizu (OTCMKTS:SHMUY – Get Free Report) and James Hardie Industries (NYSE:JHX – Get Free Report) are both mid-cap construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Dividends
Shimizu pays an annual dividend of $0.76 per share and has a dividend yield of 1.7%. James Hardie Industries pays an annual dividend of $0.21 per share and has a dividend yield of 1.3%. Shimizu pays out 19.3% of its earnings in the form of a dividend. James Hardie Industries pays out 27.3% 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. Shimizu is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Shimizu and James Hardie Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shimizu | 0 | 0 | 0 | 0 | 0.00 |
| James Hardie Industries | 0 | 4 | 10 | 1 | 2.80 |
Risk and Volatility
Shimizu has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, James Hardie Industries has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.
Profitability
This table compares Shimizu and James Hardie Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shimizu | 5.05% | 3.84% | 1.40% |
| James Hardie Industries | 8.75% | 27.95% | 10.84% |
Valuation and Earnings
This table compares Shimizu and James Hardie Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shimizu | $12.77 billion | 0.64 | $435.70 million | $3.94 | 11.08 |
| James Hardie Industries | $3.79 billion | 1.90 | $424.00 million | $0.77 | 21.76 |
Shimizu has higher revenue and earnings than James Hardie Industries. Shimizu is trading at a lower price-to-earnings ratio than James Hardie Industries, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
8.0% of James Hardie Industries shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
James Hardie Industries beats Shimizu on 11 of the 16 factors compared between the two stocks.
About Shimizu
Shimizu Corporation, together with its subsidiaries, engages in the construction, development, engineering, and life cycle valuation businesses in Japan and internationally. The company proposes, plans, designs, builds, repairs, manages, operates, and maintains offices, plants, schools, hospitals, and other buildings, such as nursing homes, rehabilitation centers, temples, shrines, and architectures; offers design, build, and renovation for tunnels, bridges, dams, urban infrastructure, energy facilities, and other public works; provides construction for manufacturing facilities, high-rise buildings, hospitals, bridges, subways, and other projects; and develops and rents real estate properties, including condominiums, data centers, office buildings, logistics facilities, and other properties. It also offers engineering, procurement, and construction services in solar and wind power projects, environmental clean-up engineering, turn-key order fulfillment of plants, and ICT systems and engineering projects. In addition, the company provides facility operation and management services; infrastructure management, maintenance, and concession services; and generates power using renewable energy and sells electricity, as well as involved in commercialization of smart cities and provision of services using ICT technology. Further, it engages in the lease and sale of construction equipment and materials; provision of interior finishing and rebar works; insurance agency, security, and travel agency services; supply of PCR test kits; and rental of various tower cranes, crawler cranes, and other construction machinery and equipment. Additionally, the company offers construction equipment consulting services, such as construction planning, maintenance, and management services; property and building management services; and real estate consulting and brokerage services, as well as tenant leasing services. Shimizu Corporation was founded in 1804 and is headquartered in Tokyo, Japan.
About James Hardie Industries
James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.
Receive News & Ratings for Shimizu Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shimizu and related companies with MarketBeat.com's FREE daily email newsletter.
