Critical Survey: Mitsubishi Electric (MIELY) vs. Its Rivals

Mitsubishi Electric (OTCMKTS:MIELY) is one of 218 publicly-traded companies in the “Electrical Equipment” industry, but how does it contrast to its rivals? We will compare Mitsubishi Electric to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Dividends

Mitsubishi Electric pays an annual dividend of $0.45 per share and has a dividend yield of 0.6%. Mitsubishi Electric pays out 34.4% of its earnings in the form of a dividend. As a group, “Electrical Equipment” companies pay a dividend yield of 1.3% and pay out 30.0% of their earnings in the form of a dividend. Mitsubishi Electric lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Mitsubishi Electric and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Electric	N/A	N/A	N/A
Mitsubishi Electric Competitors	-220.27%	-207.19%	-8.26%

Insider & Institutional Ownership

0.2% of Mitsubishi Electric shares are held by institutional investors. Comparatively, 37.6% of shares of all “Electrical Equipment” companies are held by institutional investors. 15.4% of shares of all “Electrical Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Mitsubishi Electric has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Mitsubishi Electric’s rivals have a beta of -19.65, suggesting that their average share price is 2,065% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mitsubishi Electric and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mitsubishi Electric	N/A	N/A	58.85
Mitsubishi Electric Competitors	$2.40 billion	$141.81 million	25.01

Mitsubishi Electric’s rivals have higher revenue and earnings than Mitsubishi Electric. Mitsubishi Electric 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mitsubishi Electric and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Electric	0	1	0	1	3.00
Mitsubishi Electric Competitors	2129	4963	6909	412	2.39

As a group, “Electrical Equipment” companies have a potential upside of 17.00%. Given Mitsubishi Electric’s rivals higher possible upside, analysts clearly believe Mitsubishi Electric has less favorable growth aspects than its rivals.

Mitsubishi Electric Company Profile

Mitsubishi Electric Corporation develops, manufactures, distributes, and sells electrical and electronic equipment worldwide. The company operates through: Infrastructure, Industry Mobility, Life, Business Platform, Semiconductor and Device, and Others segments. It offers turbine generators, nuclear power plant and power electronics equipment, motors, transformers, circuit breakers, gas insulated switchgears, switch controls, surveillance-system control and security systems, transmission and distribution ICT systems, display devices, locomotive and rolling stock electrical equipment, wireless and wired communications systems, network camera systems, elevators, escalators, building security and management systems, and others. It also provides programmable logic controllers, inverters, servomotors, human-machine interface, motors, hoists, magnetic switches, circuit breakers, time and power meters, uninterruptible power supply, industrial fans, computerized numerical controllers, electrical discharge and laser processing machines, industrial robots, clutches, automotive electrical equipment, electric powertrain systems, car electronics and mechatronics, car multimedia, and others. It offers satellite communications and radar equipment, satellites, antennas, missile and fire control systems, broadcasting and information systems equipment, network security systems, and systems integration products; and power modules, and high-frequency devices, and optical and LCD devices. It offers procurement, logistics, real estate, advertising, finance, and other services; room and package air conditioners, chillers, showcases, compressors, refrigeration units, air-to-water heat pump boilers, ventilators, hot water supply systems, IH cooking heaters, LED bulbs, indoor lighting, LCD televisions, refrigerators, electric fans, dehumidifiers, air purifiers, vacuum cleaners, jar rice cookers, and microwave ovens. The company was incorporated in 1921 and is headquartered in Tokyo, Japan.