Comparing Haier Electronics Group (OTCMKTS:HRELY) and Sony (NYSE:SONY)

Haier Electronics Group (OTCMKTS:HRELY) and Sony (NYSE:SONY) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Haier Electronics Group and Sony”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haier Electronics Group	$10.98 billion	1.15	$1.06 billion	$2.11	21.27
Sony	$82.90 billion	1.71	-$2.16 billion	$1.12	21.48

Haier Electronics Group has higher earnings, but lower revenue than Sony. Haier Electronics Group is trading at a lower price-to-earnings ratio than Sony, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Haier Electronics Group has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Sony has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Dividends

Haier Electronics Group pays an annual dividend of $0.58 per share and has a dividend yield of 1.3%. Sony pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. Haier Electronics Group pays out 27.5% of its earnings in the form of a dividend. Sony pays out 9.8% 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.

Institutional and Insider Ownership

14.1% of Sony shares are held by institutional investors. 7.0% of Sony shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Haier Electronics Group and Sony’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Haier Electronics Group	N/A	N/A	N/A
Sony	-2.00%	13.06%	5.22%

Analyst Recommendations

This is a breakdown of recent recommendations for Haier Electronics Group and Sony, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haier Electronics Group	0	0	0	0	0.00
Sony	1	1	4	1	2.71

Sony has a consensus target price of $22.00, indicating a potential downside of 8.55%. Given Sony’s stronger consensus rating and higher probable upside, analysts clearly believe Sony is more favorable than Haier Electronics Group.

Summary

Sony beats Haier Electronics Group on 12 of the 17 factors compared between the two stocks.

About Haier Electronics Group

As of December 21, 2020, operates as a subsidiary of Haier Smart Home Co., Ltd.

About Sony

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home gaming consoles, packaged and game software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operation of television networks and direct-to-consumer streaming services; operates a visual effects and animation unit; and manages a studio facility. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, as well as compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.