Analyzing China Resources Enterprise (OTCMKTS:CRHKY) and Marubeni (OTCMKTS:MARUY)

Marubeni (OTCMKTS:MARUY) and China Resources Enterprise (OTCMKTS:CRHKY) are both large-cap multi-sector conglomerates companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Insider and Institutional Ownership

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

Earnings and Valuation

This table compares Marubeni and China Resources Enterprise”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marubeni	$51.16 billion	0.80	$3.32 billion	$23.16	10.66
China Resources Enterprise	$5.37 billion	2.17	$659.20 million	N/A	N/A

Marubeni has higher revenue and earnings than China Resources Enterprise.

Profitability

This table compares Marubeni and China Resources Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marubeni	7.04%	15.11%	6.20%
China Resources Enterprise	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Marubeni and China Resources Enterprise, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marubeni	0	1	0	0	2.00
China Resources Enterprise	0	0	0	0	0.00

Dividends

Marubeni pays an annual dividend of $5.45 per share and has a dividend yield of 2.2%. China Resources Enterprise pays an annual dividend of $0.22 per share and has a dividend yield of 3.1%. Marubeni pays out 23.5% of its earnings in the form of a dividend.

Risk & Volatility

Marubeni has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, China Resources Enterprise has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Summary

Marubeni beats China Resources Enterprise on 8 of the 11 factors compared between the two stocks.

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.

About China Resources Enterprise

China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, distributes, and sells beer products in Mainland China. The company offers its products under the Nong Li, Snow, and Jinsha brands. The company was formerly known as China Resources Enterprise, Limited and changed its name to China Resources Beer (Holdings) Company Limited in October 2015. The company was incorporated in 1965 and is based in Wan Chai, Hong Kong. China Resources Beer (Holdings) Company Limited operates as a subsidiary of CRH (Beer) Limited.