Comparing Shanghai Industrial (OTCMKTS:SGHIY) & Hitachi (OTCMKTS:HTHIY)

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

Volatility & Risk

Shanghai Industrial has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Hitachi has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Shanghai Industrial and Hitachi’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
Hitachi	8.05%	13.27%	5.96%

Valuation and Earnings

This table compares Shanghai Industrial and Hitachi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shanghai Industrial	$2.67 billion	0.73	$259.09 million	N/A	N/A
Hitachi	$64.25 billion	2.17	$4.06 billion	$1.48	20.57

Hitachi has higher revenue and earnings than Shanghai Industrial.

Dividends

Shanghai Industrial pays an annual dividend of $1.04 per share and has a dividend yield of 5.8%. Hitachi pays an annual dividend of $0.19 per share and has a dividend yield of 0.6%. Hitachi pays out 12.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Shanghai Industrial and Hitachi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shanghai Industrial	0	0	0	0	0.00
Hitachi	0	2	0	1	2.67

Institutional and Insider Ownership

0.3% of Hitachi shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Hitachi beats Shanghai Industrial on 10 of the 12 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 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.