Critical Contrast: IRSA Inversiones Y Representaciones (NYSE:IRS) vs. Mitsubishi Estate (OTCMKTS:MITEY)

IRSA Inversiones Y Representaciones (NYSE:IRS) and Mitsubishi Estate (OTCMKTS:MITEY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Dividends

IRSA Inversiones Y Representaciones pays an annual dividend of $0.96 per share and has a dividend yield of 7.9%. Mitsubishi Estate pays an annual dividend of $0.21 per share and has a dividend yield of 1.0%. IRSA Inversiones Y Representaciones pays out 46.8% of its earnings in the form of a dividend. Mitsubishi Estate pays out 20.2% 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.

Volatility and Risk

IRSA Inversiones Y Representaciones has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Mitsubishi Estate has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.

Valuation & Earnings

This table compares IRSA Inversiones Y Representaciones and Mitsubishi Estate”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IRSA Inversiones Y Representaciones	$409.02 million	2.26	$195.18 million	$2.05	5.96
Mitsubishi Estate	$10.37 billion	2.58	$1.27 billion	$1.04	20.61

Mitsubishi Estate has higher revenue and earnings than IRSA Inversiones Y Representaciones. IRSA Inversiones Y Representaciones is trading at a lower price-to-earnings ratio than Mitsubishi Estate, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

45.5% of IRSA Inversiones Y Representaciones shares are owned by institutional investors. 25.1% of IRSA Inversiones Y Representaciones shares are owned by 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.

Profitability

This table compares IRSA Inversiones Y Representaciones and Mitsubishi Estate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IRSA Inversiones Y Representaciones	36.40%	12.00%	5.90%
Mitsubishi Estate	12.09%	5.65%	1.91%

Analyst Ratings

This is a summary of current ratings for IRSA Inversiones Y Representaciones and Mitsubishi Estate, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IRSA Inversiones Y Representaciones	0	1	0	0	2.00
Mitsubishi Estate	0	0	0	1	4.00

Summary

IRSA Inversiones Y Representaciones beats Mitsubishi Estate on 8 of the 15 factors compared between the two stocks.

About IRSA Inversiones Y Representaciones

IRSA Inversiones y Representaciones Sociedad Anónima, together with its subsidiaries, engages in the diversified real estate activities in Argentina. It operates through five segments: Shopping Malls, Offices, Hotels, Sales and Developments, and Others. The company is involved in the acquisition, development, and operation of shopping malls, office buildings, and other non-shopping mall properties primarily for rental purposes. It also acquires and operates luxury hotels and resorts under the Intercontinental, Libertador, and Llao Llao names; develops and sells residential properties, including apartment tower complexes; and acquires undeveloped land reserves for future development or sale. In addition, the company engages in the development and operation of stadium; and provision of ¡appa!, a digital customer loyalty system platform, for consumption in shopping malls, use of parking spaces, and redemption of corporate benefits. The company was incorporated in 1943 and is headquartered in Buenos Aires, Argentina. IRSA Inversiones y Representaciones Sociedad Anónima operates as a subsidiary of Cresud S.A.C.I.F. y A.

About Mitsubishi Estate

Mitsubishi Estate Co., Ltd. engages in the real estate activities in Japan and internationally. The company develops, leases, manages, and sells office buildings and commercial facilities; operates rental offices, coworking space, virtual offices, hourly meeting rooms, home delivery storage service, commercial nursing homes, and building garages; offers real estate management, as well as building management services, such as security, facility management, cleaning, and planting services; and operates hotels and airports. It also engages in the construction, sales, management, and leasing of developed condominiums and residential houses; design and contract construction of custom-built houses; renovation and sales of condominiums; real estate brokerage; dark fiber leasing and data center housing business; provision of real estate investment, such as asset management services to investment corporations and real estate funds; architectural design and engineering business; cooling and heating supply business; and parking management business. In addition, the company plans and operates logistics facilities; purchases, manufactures, processes, and sells construction materials; constructs prefabricated housing using cross-laminated timber and laminated wood; constructs, manufactures, and sells furniture and household items; offers financial consulting and investment advisory services; and develops and manages information systems and software. Further, it plans, develops, and operates GYYM, a platform service for fitness facilities; Ele-Cinema, a content distribution service that utilizes projectors in elevators; WELL ROOM, a healthcare portal site for foreign residents; and delivery and takeout systems. Additionally, the company produces and sells agricultural products; and offers walking tour entertainment content, human resources, land management, and landscaping services. Mitsubishi Estate Co., Ltd. was founded in 1890 and is headquartered in Tokyo, Japan.