Scully Royalty (NYSE:SRL) and Hitachi (OTCMKTS:HTHIY) Critical Comparison

Scully Royalty (NYSE:SRL) and Hitachi (OTCMKTS:HTHIY) are both multi-sector conglomerates companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares Scully Royalty and Hitachi”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scully Royalty	$35.77 million	2.54	-$15.02 million	N/A	N/A
Hitachi	$70.33 billion	1.91	$5.33 billion	$1.18	25.03

Hitachi has higher revenue and earnings than Scully Royalty.

Dividends

Scully Royalty pays an annual dividend of $0.26 per share and has a dividend yield of 4.2%. Hitachi pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. Hitachi pays out 18.6% of its earnings in the form of a dividend. Scully Royalty has increased its dividend for 1 consecutive years. Scully Royalty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Scully Royalty has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Hitachi has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Profitability

This table compares Scully Royalty and Hitachi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scully Royalty	N/A	N/A	N/A
Hitachi	7.64%	12.68%	5.68%

Insider & Institutional Ownership

42.0% of Scully Royalty shares are owned by institutional investors. Comparatively, 0.3% of Hitachi shares are owned by institutional investors. 1.9% of Scully Royalty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Scully Royalty and Hitachi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scully Royalty	1	0	0	0	1.00
Hitachi	0	2	0	1	2.67

Summary

Hitachi beats Scully Royalty on 8 of the 14 factors compared between the two stocks.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.

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.