Analyzing Marubeni (OTCMKTS:MARUY) & Siemens (OTCMKTS:SIEGY)

Siemens (OTCMKTS:SIEGY) and Marubeni (OTCMKTS:MARUY) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Institutional and Insider Ownership

0.7% of Siemens shares are held by institutional investors. Comparatively, 0.1% of Marubeni shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Siemens	9.79%	11.13%	4.75%
Marubeni	6.34%	9.73%	4.19%

Dividends

Siemens pays an annual dividend of $2.33 per share and has a dividend yield of 1.5%. Marubeni pays an annual dividend of $0.55 per share and has a dividend yield of 1.7%. Siemens pays out 39.5% of its earnings in the form of a dividend. Marubeni pays out 32.0% 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. Marubeni is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and target prices for Siemens and Marubeni, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siemens	2	4	4	1	2.36
Marubeni	0	1	0	1	3.00

Earnings and Valuation

This table compares Siemens and Marubeni”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siemens	$87.26 billion	2.77	$10.65 billion	$5.90	26.18
Marubeni	$54.91 billion	0.99	$3.59 billion	$1.72	19.09

Siemens has higher revenue and earnings than Marubeni. Marubeni is trading at a lower price-to-earnings ratio than Siemens, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Siemens has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Marubeni has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

Siemens beats Marubeni on 11 of the 14 factors compared between the two stocks.

About Siemens

Siemens AG is a global technology company focused on industry, infrastructure and mobility. Its products and services include factory automation and industrial software, building and energy-management systems, electrical equipment, and rail vehicles and infrastructure. Founded in Berlin in 1847 by Werner von Siemens and Johann Georg Halske, the company has grown from a telegraph business into an international engineering and technology group. Siemens serves customers across markets worldwide, including manufacturing, transportation, utilities and commercial buildings.

About Marubeni

Marubeni is a Japanese general trading and investment company with business activities spanning multiple industries. Its operations include trading, developing projects, and investing in businesses across global markets. The company’s portfolio includes food and agricultural products, metals and mineral resources, energy and chemicals, power and infrastructure, transportation equipment, and forest products. It also provides services in areas such as finance, logistics, leasing, real estate, and information technology.