Head to Head Survey: Kawasaki Heavy Industries (OTCMKTS:KWHIY) vs. IHI (OTCMKTS:IHICY)

IHI (OTCMKTS:IHICY) and Kawasaki Heavy Industries (OTCMKTS:KWHIY) are both large-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Earnings & Valuation

This table compares IHI and Kawasaki Heavy Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IHI	$10.92 billion	1.68	$1.06 billion	$1.03	16.40
Kawasaki Heavy Industries	$15.35 billion	0.84	$713.84 million	$0.26	22.73

IHI has higher earnings, but lower revenue than Kawasaki Heavy Industries. IHI is trading at a lower price-to-earnings ratio than Kawasaki Heavy Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for IHI and Kawasaki Heavy Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IHI	0	2	0	0	2.00
Kawasaki Heavy Industries	0	3	0	0	2.00

Risk and Volatility

IHI has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Kawasaki Heavy Industries has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Dividends

IHI pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Kawasaki Heavy Industries pays an annual dividend of $0.06 per share and has a dividend yield of 1.0%. IHI pays out 6.8% of its earnings in the form of a dividend. Kawasaki Heavy Industries pays out 23.1% 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.

Profitability

This table compares IHI and Kawasaki Heavy Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IHI	N/A	N/A	N/A
Kawasaki Heavy Industries	N/A	N/A	N/A

About IHI

IHI Corporation designs and builds engineering solutions in Japan and internationally. The company operates through four segments: Resources, Energy and Environment; Social Infrastructure; Industrial Systems and General-Purpose Machinery; and Aero Engine, Space and Defense. The company engages in the manufacturing, sale, and provision of services related to power systems plants for land use and power systems for chips; carbon solutions comprising boilers and storage facilities; components for nuclear power plants; bridges and water gates, transport systems, shield systems, and concrete construction materials; vehicular turbochargers, parking, heat treatment and surface engineering; transport machineries; logistics and industrial systems; and rotating machineries comprising compressors, separation systems, and turbochargers for ships. It also offers 3D laser radars, X-ray inspection systems, monitoring equipment, oil leak monitors, vibration control systems and seismic isolation floor systems, and disaster prevention equipment; environmental monitoring; cryogenic products, material handling systems, steelmaking equipment, pulp and paper machinery, agricultural machinery, life associated equipment; aero engines; rocket, space utilization, defense, and traffic control systems; and communication, electronic, electric measuring, information processing machines, and other instruments and equipment. In addition, the company sells and rents real estate. The company was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd and changed its name to IHI Corporation in 2007. IHI Corporation was founded in 1853 and is headquartered in Tokyo, Japan.

About Kawasaki Heavy Industries

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the Japan ministry of defense; helicopters; and helicopter and jet engines for commercial aircrafts. The company also manufactures railway cars; a range of rolling stocks, including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems. In addition, it engages in the production and sale of energy-related machinery and systems, marine machinery and systems, industrial equipment, and environmental equipment. Further, the company manufactures and supplies motorcycles, off-road four wheelers, watercrafts, general-purpose gasoline engines, etc. Additionally, it manufactures and sells pumps, motors, valves, and various hydraulic machinery, as well as assembles hydraulic systems; and industrial robots for use in welding, assembly, handling, painting, and palletization for various industries, including automotive and electronics industries. The company was founded in 1878 and is headquartered in Tokyo, Japan.