Critical Contrast: Marubeni (OTCMKTS:MARUY) versus Jardine Matheson (OTCMKTS:JMHLY)

Marubeni (OTCMKTS:MARUY) and Jardine Matheson (OTCMKTS:JMHLY) are both large-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Marubeni and Jardine Matheson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marubeni	0	1	1	0	2.50
Jardine Matheson	0	0	0	1	4.00

Profitability

This table compares Marubeni and Jardine Matheson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marubeni	6.21%	12.96%	5.46%
Jardine Matheson	N/A	N/A	N/A

Earnings and Valuation

This table compares Marubeni and Jardine Matheson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marubeni	$51.16 billion	1.19	$3.32 billion	$20.78	17.78
Jardine Matheson	$34.22 billion	0.58	$1.11 billion	N/A	N/A

Marubeni has higher revenue and earnings than Jardine Matheson.

Dividends

Marubeni pays an annual dividend of $5.02 per share and has a dividend yield of 1.4%. Jardine Matheson pays an annual dividend of $3.36 per share and has a dividend yield of 4.9%. Marubeni pays out 24.2% of its earnings in the form of a dividend.

Institutional & Insider Ownership

0.1% of Marubeni shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Marubeni has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Jardine Matheson has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Summary

Marubeni beats Jardine Matheson on 9 of the 13 factors compared between the two stocks.

About Marubeni

Marubeni Corporation engages in various business activities. It manufactures, wholesales, and retails apparel, footwear, home furnishing and sport goods, industrial and textile materials, tire and rubber materials, and household and nursing care products; develops uranium, nuclear fuel cycle, iron ore, coking coal, copper mines, and related equipment and services; smelts and refines aluminum and magnesium; leases temporary steel construction materials; explores for, develops, and produces oil and gas; manages infrastructure funds; and develops and manages real estate. The company also offers insurance, technical, ICT, and logistic services; agri-inputs; fertilizer and crop protection product contracting services; crop protection product formulations; wood chips, biomass fuels, pulp and waste papers, paper, paperboards, sanitary, and building and construction materials; engineering, procurement, and construction services; and operation and maintenance services. It trades in fertilizers, dairy, agricultural, and marine products; sugar, processed food, beverages raw materials, and commercial use food materials; grains, oilseeds, feed ingredients, compound feeds, fresh and processed meat, petrochemicals, plastics, salts, chlor-alkalis, life science products, electronic materials, fertilizer materials, and inorganic mineral resources and chemicals; steelmaking raw materials, ferroalloys, nonferrous metals, and steel products; cement and ingots related materials; and petroleum and LPG. The company engages in infrastructure; water; automotive finance; power generation; power service and retail; natural gas; hydrogen; and fuel ammonia businesses. It owns, purchases, operates, leases, sells, and charters aerospace and ship products; leases refrigerated trailers, commercial vehicles, and freight cars; and sells, trades in, leases, finances, and services construction and industrial machinery, and mobility products. The company was founded in 1858 and is based in Tokyo, Japan.

About Jardine Matheson

Jardine Matheson Holdings Limited, through its subsidiaries, operates in motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, and transport businesses in China, Southeast Asia, and internationally. It also involved in the restaurants and hotels, financial services, heavy equipment, mining, and agribusinesses. The company offers automotive and transport services, as well as invests in, develops, and manages residential, commercial, and mixed-use properties. It also operates 7-Eleven, IKEA, and other retailing business, as well as Pizza Hut and KFC franchise restaurants; and invests in and manages hotels, resorts, and residences, as well as engages in construction and energy, infrastructure and logistics, and information technology businesses. In addition, the company sells and services motor vehicles; invests in, owns, develops, and manages office and retail properties; operates outlets, including supermarkets, hypermarkets, health and beauty stores, and home furnishings stores. Further, it engages in the automotive dealerships business. Additionally, the company invests in digital business, such as Halodoc, a healthtech online ecosystem; Sayurbox, an e-commerce grocery platform; Paxel, a technology-based logistics business; and OLX, a used car platform. Jardine Matheson Holdings Limited was founded in 1832 and is based in Hamilton, Bermuda.