Reviewing Hitachi (HTHIY) & Granite Construction (GVA)
Hitachi (OTCMKTS: HTHIY) and Granite Construction (NYSE:GVA) are both multi-sector conglomerates companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Valuation and Earnings
This table compares Hitachi and Granite Construction’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hitachi||$81.81 billion||0.43||$2.15 billion||$4.41||16.56|
|Granite Construction||$2.99 billion||0.74||$69.09 million||$1.62||34.44|
This table compares Hitachi and Granite Construction’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
0.3% of Hitachi shares are owned by institutional investors. Comparatively, 96.1% of Granite Construction shares are owned by institutional investors. 1.3% of Granite Construction shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Hitachi pays an annual dividend of $0.51 per share and has a dividend yield of 0.7%. Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Hitachi pays out 11.6% of its earnings in the form of a dividend. Granite Construction pays out 32.1% 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.
This is a breakdown of current ratings and recommmendations for Hitachi and Granite Construction, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Granite Construction has a consensus price target of $72.00, suggesting a potential upside of 29.03%. Given Granite Construction’s higher probable upside, analysts clearly believe Granite Construction is more favorable than Hitachi.
Risk & Volatility
Hitachi has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Granite Construction has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
Granite Construction beats Hitachi on 9 of the 15 factors compared between the two stocks.
Hitachi Company Profile
Hitachi, Ltd. provides information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and ecofriendly systems, other products, and financial services worldwide. The company's Information & Telecommunication Systems segment offers systems integration, consulting, and cloud services; and servers, storage products, software, telecommunications and network equipment, and ATMs. Its Social Infrastructure & Industrial Systems segment provides industrial machinery and plants, elevators, escalators, and railway systems; and thermal, nuclear, and renewable energy power generation systems, and transmission and distribution systems. The company's Electronic Systems & Equipment segment offers semiconductor processing equipment, test and measurement equipment, industrial products, medical electronics equipment, and power tools. Its Construction Machinery segment provides hydraulic excavators, wheel loaders, and mining machinery. The company's High Functional Materials & Components segment offers semiconductor and display related materials, circuit boards and materials, automotive parts, energy storage devices, specialty steels, magnetic materials and components, casting components and materials, and wires and cables. Its Automotive Systems segment provides engine management, electric power train, drive control, and car information systems. The company's Smart Life & Ecofriendly Systems segment offers air-conditioning equipment, room air conditioners, refrigerators, and washing machines. Its Others segment provides optical disk drives, property management, and others. The company's Financial Services segment offers leasing and loan guarantee services. Hitachi, Ltd. has collaboration with the University of Utah Health. The company was founded in 1910 and is headquartered in Tokyo, Japan.
Granite Construction Company Profile
Granite Construction Incorporated operates as a heavy civil contractor and a construction materials producer in the United States. The company operates through three segments: Construction, Large Project Construction, and Construction Materials. The Construction segment undertakes various civil construction projects focusing on new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, water-related facilities, utilities, and other infrastructure projects. It serves customers in the public sector, including certain federal agencies, state departments of transportation, county and city public works departments, school districts and developers, utilities, and private owners of industrial, commercial, and residential sites. The Large Project Construction segment focuses on large, complex infrastructure projects, including highways, mass transit facilities, bridges, tunnels, waterway locks and dams, pipelines, canals, power-related facilities, water-related facilities, utilities, and airport infrastructure. It also undertakes primarily bid-build, design-build, and construction management/general contractor contracts, together with various contract methods relating to public-private partnerships. The Construction Materials segment mines and processes aggregates; and produces and sells construction materials, primarily asphalt, to contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, and brokers. The company also performs site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities; and provides construction management professional services. Granite Construction Incorporated was founded in 1922 and is headquartered in Watsonville, California.
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