MSC Industrial Direct (NYSE:MSM) & Mitsui & Co. (OTCMKTS:MITSY) Head-To-Head Analysis

Mitsui & Co. (OTCMKTS:MITSY) and MSC Industrial Direct (NYSE:MSM) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Institutional and Insider Ownership

79.3% of MSC Industrial Direct shares are owned by institutional investors. 0.0% of Mitsui & Co. shares are owned by company insiders. Comparatively, 19.0% of MSC Industrial Direct shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mitsui & Co. and MSC Industrial Direct, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsui & Co.	0	1	0	0	2.00
MSC Industrial Direct	0	4	4	0	2.50

MSC Industrial Direct has a consensus target price of $123.43, indicating a potential downside of 4.69%. Given MSC Industrial Direct’s stronger consensus rating and higher possible upside, analysts plainly believe MSC Industrial Direct is more favorable than Mitsui & Co..

Dividends

Mitsui & Co. pays an annual dividend of $11.86 per share and has a dividend yield of 2.0%. MSC Industrial Direct pays an annual dividend of $3.48 per share and has a dividend yield of 2.7%. Mitsui & Co. pays out 28.0% of its earnings in the form of a dividend. MSC Industrial Direct pays out 84.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MSC Industrial Direct has raised its dividend for 3 consecutive years. MSC Industrial Direct is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Mitsui & Co. and MSC Industrial Direct’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsui & Co.	6.22%	10.67%	4.76%
MSC Industrial Direct	5.91%	17.34%	9.79%

Valuation & Earnings

This table compares Mitsui & Co. and MSC Industrial Direct”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsui & Co.	$92.97 billion	0.93	$5.21 billion	$42.41	14.34
MSC Industrial Direct	$3.77 billion	1.92	$199.33 million	$4.14	31.28

Mitsui & Co. has higher revenue and earnings than MSC Industrial Direct. Mitsui & Co. is trading at a lower price-to-earnings ratio than MSC Industrial Direct, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Mitsui & Co. has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, MSC Industrial Direct has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Summary

MSC Industrial Direct beats Mitsui & Co. on 12 of the 17 factors compared between the two stocks.

About Mitsui & Co.

Mitsui & Co., Ltd. operates as an trading and investment company worldwide. The company engages in the manufacture and sale of steel products; steel processing, maintenance, and recycling activities; investment, development, and trading of mineral and metal resources, as well as resource recycling and industrial developing solutions; and upstream development, logistics, and trading of energy resources, such as natural gas/LNG, oil, coal, and uranium. It also offers power, gas, water, rail, and logistics systems; sales, financing, lease, transportation, and logistics services; and invests in plants, offshore energy development, ships, aviation, space, railways, and automotives, as well as machinery for mining, construction, and industrial use. In addition, the company provides basic chemicals and inorganic raw materials, functional materials, electronic materials, specialty chemicals, housing and lifestyle materials, agri-inputs, animal/human nutrition, and health products; and logistics infrastructures services, including tank terminal operation, as well as plastic recycling and next-generation energy, such as hydrogen and ammonia and forest resources businesses. Further, it engages in the food resources and products, merchandising, retail, fashion and textiles, wellness, healthcare, pharma, hospitality, and human capital businesses. Additionally, it is involved in the ICT, finance, real estate, and logistics businesses. The company was incorporated in 1947 and is headquartered in Tokyo, Japan. Mitsui E&P Italia B operates as a subsidiary of Mitsui & Co., Ltd.

About MSC Industrial Direct

MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. It offers stock-keeping units through its catalogs and brochures; e-commerce channels, including its website, mscdirect.com; inventory management solutions; and customer care centers, customer fulfillment centers, regional inventory centers, and warehouses. The company serves individual machine shops, manufacturing companies, and government agencies. MSC Industrial Direct Co., Inc. was founded in 1941 and is headquartered in Melville, New York.