Head to Head Review: Marubeni (OTCMKTS:MARUY) & Ayala (OTCMKTS:AYALY)

Ayala (OTCMKTS:AYALY) and Marubeni (OTCMKTS:MARUY) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Ayala and Marubeni, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ayala	0	0	0	0	0.00
Marubeni	0	2	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ayala	N/A	N/A	N/A
Marubeni	6.62%	13.16%	5.66%

Dividends

Ayala pays an annual dividend of $5.84 per share and has a dividend yield of 81.6%. Marubeni pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. Ayala pays out 10.7% of its earnings in the form of a dividend. Marubeni pays out 24.6% 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. Ayala is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

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

Earnings and Valuation

This table compares Ayala and Marubeni”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ayala	N/A	N/A	N/A	$54.52	0.13
Marubeni	$54.91 billion	0.97	$3.59 billion	$2.28	14.05

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

Summary

Marubeni beats Ayala on 7 of the 10 factors compared between the two stocks.

About Ayala

Ayala Corporation engages in the real estate and hotel businesses in the Philippines, Europe, Asia, and the United States. It develops, constructs, leases, and sells residential and commercial lots, as well as develops and sells leisure properties; manages land bank; operates hotels, cinema, and theaters; and provides construction and property management services. The company also provides saving and time deposits, corporate, consumer, mortgage, leasing, and agri business loans; deposit and cash management, asset management, securities brokerage, foreign exchange and capital markets investment, corporate finance and consulting, investment banking, internet banking, foreign exchange, and safety deposit services; and life, non-life, pre-need, and reinsurance services. In addition, it offers digital wireless communication, long distance communication, broadband internet, wireline voice and data communication, and local exchange carrier services; and designs, develops, operates, administers, and manages software applications and systems. Further, the company offers electronics manufacturing, and power semiconductor assembly and testing services; and generates power using renewable and conventional technologies. Additionally, the company manufactures, distributes, sells, repairs, and services passenger cars, commercial vehicles, and motorcycles; and provides water delivery, sewerage, sanitation, and distribution services, as well as pipe works, used water management, and management services, as well as offers venture capital for technologies and businesses; and onshore and offshore outsourcing, air-chartered, consultancy, healthcare, infrastructure, logistics, and education services. It also provides agriculture services. The company was founded in 1834 and is headquartered in Makati City, the Philippines.

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.