Mitsubishi Heavy Industries (MHVYF) & Its Peers Critical Analysis

Mitsubishi Heavy Industries (OTCMKTS:MHVYF) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it compare to its rivals? We will compare Mitsubishi Heavy Industries to related businesses based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Insider and Institutional Ownership

51.8% of shares of all “Machinery” companies are owned by institutional investors. 14.2% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Heavy Industries	7.04%	12.97%	4.99%
Mitsubishi Heavy Industries Competitors	-1,044.19%	-15.05%	0.53%

Volatility and Risk

Mitsubishi Heavy Industries has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Mitsubishi Heavy Industries’ rivals have a beta of 5.12, indicating that their average stock price is 412% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Mitsubishi Heavy Industries and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Heavy Industries	0	1	1	1	3.00
Mitsubishi Heavy Industries Competitors	4206	14711	18217	808	2.41

As a group, “Machinery” companies have a potential upside of 35.32%. Given Mitsubishi Heavy Industries’ rivals higher possible upside, analysts clearly believe Mitsubishi Heavy Industries has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Mitsubishi Heavy Industries and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mitsubishi Heavy Industries	$33.04 billion	$2.19 billion	24.87
Mitsubishi Heavy Industries Competitors	$4.66 billion	$364.05 million	4.99

Mitsubishi Heavy Industries has higher revenue and earnings than its rivals. Mitsubishi Heavy Industries 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.

Summary

Mitsubishi Heavy Industries beats its rivals on 8 of the 13 factors compared.

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. It operates through Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; and Aircraft, Defense & Space segments. The company offers thermal, renewable energy, nuclear power generation, and engine power plants; oil and gas production plants; lithium-ion battery products and fuel cells; civil aircrafts and engines, aviation equipment, and maintenance, repair, and overhaul of aircrafts; and launch vehicles and services, rocket engines, reaction control systems, space stations, rocket launchers, rocket engine combustion test facilities, and electronic parts. It also provides passenger and commercial ships, LNG and LPG carriers, special purpose vessels, and IT services and systems; marine machineries, boilers, turbines, engines, and structures; and intelligent transport systems products and solutions, such as electronic toll collection system, road user charging system, highway traffic management system, EV management system, and development system. In addition, the company offers organic solvent exhaust gas treatment system, waste-to-energy system, sludge treatment system, air quality control system, and bio-treatment system; turbochargers, car air-conditioning and refrigeration systems, rubber and tire machinery, and testing equipment; forklift trucks; and printing, paper converting, and metals, and food & packaging machinery, pumps, compressors & mechanical turbines, hydraulic components. Further, it provides gas holders, vibration control systems, water pipes, tunnel excavation machinery, and cybersecurity solutions for industrial control systems; special vehicles, naval ship and maritime systems, defense aircrafts, helicopters, defense aeroengines, and guided weapon systems; CO2 capture plants; and after-sales services. The company was founded in 1884 and is headquartered in Tokyo, Japan.