Mitsui & Co. (OTCMKTS:MITSY – Get Free Report) and MSC Industrial Direct (NYSE:MSM – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Analyst Ratings
This is a summary of recent recommendations for Mitsui & Co. and MSC Industrial Direct, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mitsui & Co. | 0 | 1 | 0 | 0 | 2.00 |
| MSC Industrial Direct | 0 | 4 | 4 | 0 | 2.50 |
MSC Industrial Direct has a consensus price target of $123.43, indicating a potential downside of 0.32%. Given MSC Industrial Direct’s stronger consensus rating and higher probable upside, analysts clearly believe MSC Industrial Direct is more favorable than Mitsui & Co..
Dividends
Risk and Volatility
Mitsui & Co. has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, MSC Industrial Direct has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
Earnings & Valuation
This table compares Mitsui & Co. and MSC Industrial Direct”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mitsui & Co. | $92.97 billion | 0.96 | $5.21 billion | $42.41 | 14.71 |
| MSC Industrial Direct | $3.77 billion | 1.83 | $199.33 million | $4.14 | 29.91 |
Mitsui & Co. has higher revenue and earnings than MSC Industrial Direct. Mitsui & Co. is trading at a lower price-to-earnings ratio than MSC Industrial Direct, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Mitsui & Co. and MSC Industrial Direct’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mitsui & Co. | 6.22% | 10.67% | 4.76% |
| MSC Industrial Direct | 5.91% | 17.34% | 9.79% |
Institutional and Insider Ownership
79.3% of MSC Industrial Direct shares are owned by institutional investors. 0.0% of Mitsui & Co. shares are owned by insiders. Comparatively, 19.0% of MSC Industrial Direct shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
MSC Industrial Direct beats Mitsui & Co. on 12 of the 17 factors compared between the two stocks.
About Mitsui & Co.
Mitsui & Co., Ltd. operates as an trading and investment company worldwide. The company engages in the manufacture and sale of steel products; steel processing, maintenance, and recycling activities; investment, development, and trading of mineral and metal resources, as well as resource recycling and industrial developing solutions; and upstream development, logistics, and trading of energy resources, such as natural gas/LNG, oil, coal, and uranium. It also offers power, gas, water, rail, and logistics systems; sales, financing, lease, transportation, and logistics services; and invests in plants, offshore energy development, ships, aviation, space, railways, and automotives, as well as machinery for mining, construction, and industrial use. In addition, the company provides basic chemicals and inorganic raw materials, functional materials, electronic materials, specialty chemicals, housing and lifestyle materials, agri-inputs, animal/human nutrition, and health products; and logistics infrastructures services, including tank terminal operation, as well as plastic recycling and next-generation energy, such as hydrogen and ammonia and forest resources businesses. Further, it engages in the food resources and products, merchandising, retail, fashion and textiles, wellness, healthcare, pharma, hospitality, and human capital businesses. Additionally, it is involved in the ICT, finance, real estate, and logistics businesses. The company was incorporated in 1947 and is headquartered in Tokyo, Japan. Mitsui E&P Italia B operates as a subsidiary of Mitsui & Co., Ltd.
About MSC Industrial Direct
MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. It offers stock-keeping units through its catalogs and brochures; e-commerce channels, including its website, mscdirect.com; inventory management solutions; and customer care centers, customer fulfillment centers, regional inventory centers, and warehouses. The company serves individual machine shops, manufacturing companies, and government agencies. MSC Industrial Direct Co., Inc. was founded in 1941 and is headquartered in Melville, New York.
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