Head-To-Head Contrast: Kubota (OTCMKTS:KUBTY) and Mitsubishi Heavy Industries (OTCMKTS:MHVYF)

Mitsubishi Heavy Industries (OTCMKTS:MHVYF) and Kubota (OTCMKTS:KUBTY) are both large-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Earnings & Valuation

This table compares Mitsubishi Heavy Industries and Kubota”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi Heavy Industries	$33.04 billion	2.48	$2.19 billion	$0.76	31.94
Kubota	$20.19 billion	0.94	$1.25 billion	$7.59	10.95

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

Profitability

This table compares Mitsubishi Heavy Industries and Kubota’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Heavy Industries	7.04%	12.97%	4.99%
Kubota	8.18%	9.12%	4.27%

Analyst Ratings

This is a summary of recent ratings and target prices for Mitsubishi Heavy Industries and Kubota, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Heavy Industries	0	1	1	1	3.00
Kubota	2	0	0	2	2.50

Institutional & Insider Ownership

0.4% of Kubota shares are owned by institutional investors. 0.0% of Kubota shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Mitsubishi Heavy Industries has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Kubota has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Summary

Mitsubishi Heavy Industries beats Kubota on 8 of the 14 factors compared between the two stocks.

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. It operates through Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; and Aircraft, Defense & Space segments. The company offers thermal, renewable energy, nuclear power generation, and engine power plants; oil and gas production plants; lithium-ion battery products and fuel cells; civil aircrafts and engines, aviation equipment, and maintenance, repair, and overhaul of aircrafts; and launch vehicles and services, rocket engines, reaction control systems, space stations, rocket launchers, rocket engine combustion test facilities, and electronic parts. It also provides passenger and commercial ships, LNG and LPG carriers, special purpose vessels, and IT services and systems; marine machineries, boilers, turbines, engines, and structures; and intelligent transport systems products and solutions, such as electronic toll collection system, road user charging system, highway traffic management system, EV management system, and development system. In addition, the company offers organic solvent exhaust gas treatment system, waste-to-energy system, sludge treatment system, air quality control system, and bio-treatment system; turbochargers, car air-conditioning and refrigeration systems, rubber and tire machinery, and testing equipment; forklift trucks; and printing, paper converting, and metals, and food & packaging machinery, pumps, compressors & mechanical turbines, hydraulic components. Further, it provides gas holders, vibration control systems, water pipes, tunnel excavation machinery, and cybersecurity solutions for industrial control systems; special vehicles, naval ship and maritime systems, defense aircrafts, helicopters, defense aeroengines, and guided weapon systems; CO2 capture plants; and after-sales services. The company was founded in 1884 and is headquartered in Tokyo, Japan.

About Kubota

Kubota Corporation manufactures and sells agricultural and construction machinery in Japan, North America, Europe, Asia, and internationally. It operates through three segments: Farm & Machinery, Water & Environment, and Others. The Farm & Machinery segment offers tractors, power tillers, combine harvesters, rice transplanters, turf equipment, utility vehicles, other agricultural machinery, implements, attachments, post-harvest machinery, vegetable production equipment, intermediate management machine, and other equipment; cooperative drying, rice seedling, and gardening facilities; scales, weighing and measuring control systems, and air purifier; engines for farm equipment, construction machinery, industrial machinery, and generators; and mini excavators, wheel and skid steer loaders, compact track loaders, and other construction machinery related products. Its Water & Environment segment provides ductile iron pipes, synthetic pipes, valves, and single stack drain fittings, as well as design and construction services; reformer and cracking tubes, hearth rolls, TXAX materials, and spiral steel pipes; air-conditioning equipment; wastewater treatment equipment and plants, pumps and pump plants, membrane solutions, wastewater purification plants, night-soil treatment plants, waste incinerating and meltingplants, waste shredding and sorting plants, flue gas desulfurization apparatus, membrane methane fermentation plants, wastewater treatment plant, and valves. The Others segment offers logistics services; and roofing and exterior wall materials. It also engages in the underwriting of non-life insurance, retail financing, finance leasing, maintenance, security guarding, and facility management services; and import and export of components for farm equipment, engines, and construction machinery. It serves customers through a network of dealers. Kubota Corporation was founded in 1890 and is headquartered in Osaka, Japan.