Head to Head Survey: Hitachi Constr (HTCMY) and Its Competitors

Risk and Volatility

Hitachi Constr has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Hitachi Constr’s competitors have a beta of 4.48, indicating that their average stock price is 348% more volatile than the S&P 500.

Insider and Institutional Ownership

52.6% of shares of all “Machinery” companies are held by institutional investors. 13.8% of shares of all “Machinery” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Hitachi Constr and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitachi Constr	6.31%	9.57%	4.81%
Hitachi Constr Competitors	-1,938.37%	-13.37%	0.73%

Earnings and Valuation

This table compares Hitachi Constr and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hitachi Constr	$9.34 billion	$483.07 million	11.99
Hitachi Constr Competitors	$4.44 billion	$345.61 million	-2.00

Hitachi Constr has higher revenue and earnings than its competitors. Hitachi Constr is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Hitachi Constr pays an annual dividend of $1.86 per share and has a dividend yield of 2.8%. Hitachi Constr pays out 33.9% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.5% and pay out 27.3% of their earnings in the form of a dividend.

Summary

Hitachi Constr beats its competitors on 7 of the 11 factors compared.

Hitachi Constr Company Profile

Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures and sells construction machineries worldwide. The company operates through two segments, Construction Machinery Business and Solution Business. It offers excavators and wheel loaders, hydraulic excavators, compaction equipment, and rigid dump trucks. The company also provides ICT construction solutions; ConSite that monitors machines' operational status and alarms by sending monthly operational reports, as well as notifies emergency alarms; Fleet management system, which offers real-time monitoring of dump truck for optimizing vehicle operations; and autonomous haulage system for autonomous operation of mining dump trucks. In addition, it provides parts and services; used equipment under the PREMIUM USED brand; machinery rental services under the PREMIUM RENTAL and REC brand names; and parts remanufacturing services. The company was incorporated in 1951 and is headquartered in Taito, Japan. Hitachi Construction Machinery Co., Ltd. is a subsidiary of Hitachi, Ltd.