Hitachi Constr (HTCMY) versus The Competition Critical Comparison

Dividends

Hitachi Constr pays an annual dividend of $1.86 per share and has a dividend yield of 2.8%. Hitachi Constr pays out 33.9% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.5% and pay out 27.3% of their earnings in the form of a dividend.

Profitability

This table compares Hitachi Constr and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitachi Constr	6.31%	9.57%	4.81%
Hitachi Constr Competitors	-1,938.37%	-13.37%	0.73%

Valuation and Earnings

This table compares Hitachi Constr and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hitachi Constr	$9.34 billion	$483.07 million	11.99
Hitachi Constr Competitors	$4.44 billion	$345.61 million	-2.00

Hitachi Constr has higher revenue and earnings than its rivals. Hitachi Constr is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

52.6% of shares of all “Machinery” companies are owned by institutional investors. 13.8% of shares of all “Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Hitachi Constr has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Hitachi Constr’s rivals have a beta of 4.48, meaning that their average share price is 348% more volatile than the S&P 500.

Summary

Hitachi Constr beats its rivals on 7 of the 11 factors compared.

About Hitachi Constr

Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures and sells construction machineries worldwide. The company operates through two segments, Construction Machinery Business and Solution Business. It offers excavators and wheel loaders, hydraulic excavators, compaction equipment, and rigid dump trucks. The company also provides ICT construction solutions; ConSite that monitors machines' operational status and alarms by sending monthly operational reports, as well as notifies emergency alarms; Fleet management system, which offers real-time monitoring of dump truck for optimizing vehicle operations; and autonomous haulage system for autonomous operation of mining dump trucks. In addition, it provides parts and services; used equipment under the PREMIUM USED brand; machinery rental services under the PREMIUM RENTAL and REC brand names; and parts remanufacturing services. The company was incorporated in 1951 and is headquartered in Taito, Japan. Hitachi Construction Machinery Co., Ltd. is a subsidiary of Hitachi, Ltd.