Reviewing SHIMIZU CORP/ADR (OTCMKTS:SHMUY) & ITOCHU CORP/ADR (OTCMKTS:ITOCY)

SHIMIZU CORP/ADR (OTCMKTS:SHMUY) and ITOCHU CORP/ADR (OTCMKTS:ITOCY) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

0.2% of ITOCHU CORP/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SHIMIZU CORP/ADR and ITOCHU CORP/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SHIMIZU CORP/ADR 6.31% 13.30% 5.27%
ITOCHU CORP/ADR 4.03% 12.74% 4.37%

Earnings and Valuation

This table compares SHIMIZU CORP/ADR and ITOCHU CORP/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SHIMIZU CORP/ADR $15.12 billion 0.53 $897.02 million N/A N/A
ITOCHU CORP/ADR $104.52 billion 0.33 $4.51 billion $5.84 8.01

ITOCHU CORP/ADR has higher revenue and earnings than SHIMIZU CORP/ADR.

Dividends

SHIMIZU CORP/ADR pays an annual dividend of $1.02 per share and has a dividend yield of 2.5%. ITOCHU CORP/ADR pays an annual dividend of $1.22 per share and has a dividend yield of 2.6%. ITOCHU CORP/ADR pays out 20.9% of its earnings in the form of a dividend.

Risk & Volatility

SHIMIZU CORP/ADR has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, ITOCHU CORP/ADR has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for SHIMIZU CORP/ADR and ITOCHU CORP/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SHIMIZU CORP/ADR 0 0 0 0 N/A
ITOCHU CORP/ADR 0 0 0 0 N/A

Summary

SHIMIZU CORP/ADR beats ITOCHU CORP/ADR on 7 of the 11 factors compared between the two stocks.

About SHIMIZU CORP/ADR

Shimizu Corporation engages in building contracting, civil engineering, machinery, and other construction works Japan. It also involved in the research, planning, study, evaluation, diagnosis, soil analysis, surveying, design, supervision, management, and consultancy related to regional, urban, ocean, space, resources, and energy developments, as well as construction works and environment improvements; purchase, sale, letting, brokerage, management, appraisal, and consultancy of real estate. In addition, the company constructs, lets, and sells residential houses and other buildings; plans, constructs, possesses, maintains, and operates public office buildings, roads, harbors, airports, and parks, as well as educational and cultural, medical and welfare, and water supply and sewerage facilities; generates and supplies electricity and heat; undertakes purification works; collects, disposes, and reutilizes waste; and designs, installs, leases, sells, and maintains information communication and building management systems. Further, it engages in the cultivation, production, sale, and consultancy of agricultural produce and seafood, and forestry work; maintenance and upkeep, security, and cleaning of buildings, equipment, and machinery; and design, manufacture, sale, lease, and brokerage of construction machinery and materials, concrete and wooden products, furniture, and interior fittings. Additionally, the company offers industrial property, copyrights, and computer software; pharmaceuticals, medical care materials, and medical machinery and equipment; and advertisement, publication, printing, images and other information media, business event, inland transportation, warehouse, distribution center, insurance agency, manpower supply, loan, guarantee, and factoring services. It also engages in the management and consultancy of sporting, hotel, restaurant, nursing, and resort facilities. The company was founded in 1804 and is headquartered in Tokyo, Japan.

About ITOCHU CORP/ADR

ITOCHU Corporation engages in trading and importing/exporting various products worldwide. The company's Textile segment produces and sells textile raw materials, garment materials, textile products, apparel, and industrial materials; and focuses on import licenses for lifestyle brands, fashion accessories, and garments in various areas, such as luxury, casual, and sports. Its Machinery segment provides engineering, procurement and construction services; operates water and environmental, infrastructure, renewable energy, petrochemical, and IPP projects and plants; sells and leases aircraft and related equipment; sells textile machinery, auto parts, medical equipment, electronic systems, and construction machinery; and owns, operates, and leases ships. The company's Metals & Minerals segment develops iron ore, coal, alumina, etc.; processes and trades in steel products; trades in iron ore, coal, aluminum, uranium, and non-ferrous products; and engages in steel recycling business. Its Energy & Chemicals segment trades in crude oil, petroleum products, LPG, LNG, natural gas, and electricity, as well as basic pharmaceutical products, sulfur, fertilizers, synthetic resins, household goods, fine chemicals, electronic materials, etc. The company's Food segment produces, distributes, and retails food products. Its General Products & Realty segment is involved in the wood products and building materials, pulp, paper, hygiene, natural rubber, tire, and logistics businesses; and real estate management and development, housing and renovation, etc. The company's ICT & Financial Business segment offers information technology solutions, Internet related services, venture capital services, mobile telephone equipment and services, broadcasting and communications, entertainment and content services, outsourcing services for healthcare and preventive medicine, financial services, and insurance brokerage services. The company was founded in 1858 and is headquartered in Tokyo, Japan.

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