Sumitomo (OTCMKTS:SSUMY) & Mitsubishi (OTCMKTS:MSBHF) Head to Head Survey

Mitsubishi (OTCMKTS:MSBHF) and Sumitomo (OTCMKTS:SSUMY) are both large-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares Mitsubishi and Sumitomo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi	4.42%	8.03%	3.74%
Sumitomo	8.34%	12.31%	5.19%

Valuation & Earnings

This table compares Mitsubishi and Sumitomo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi	$122.26 billion	0.77	$6.27 billion	$1.19	19.80
Sumitomo	$47.89 billion	0.80	$3.75 billion	$3.39	9.27

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Mitsubishi and Sumitomo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi	0	2	0	0	2.00
Sumitomo	0	0	0	2	4.00

Risk and Volatility

Mitsubishi has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Sumitomo has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Summary

Sumitomo beats Mitsubishi on 7 of the 11 factors compared between the two stocks.

About Mitsubishi

Mitsubishi Corporation engages in the natural gas, industrial materials and infrastructure, petroleum and chemicals, mineral resources, automotive and mobility, food and consumer industry, power solution, and urban development businesses worldwide. The Natural Gas segment engages in the development and production of natural gas/oil; and liquified natural gas business. Its Industrial Materials segment engages in sale, trading, and development of materials, including steel products, silica sand, cement, ready-mixed concrete, carbon materials, PVC, and functional materials for the automobile, mobility, construction, and infrastructure industries. The Petroleum & Chemicals segment invests in, develops, and trades in crude oil and oil products, LPG, ethylene, methanol, salt, ammonia, plastics, and fertilizers. Its Mineral Resources segment invests in and develops metallurgical coal, copper, iron ore, and aluminum. The Industrial Infrastructure segment trades in the field of energy infrastructure, industrial plants, machinery tools, construction and agricultural machinery, elevators, escalators, facility management, ships, and aerospace related equipment. Its Automotive & Mobility segment produces, finances, and sells passenger and commercial cars; and mobility services. The Food Industry segment trades, develops, and sells food resources, fresh foods, consumer goods, and food ingredients. Its Consumer Industry segment supplies products and services a range of fields, including retail and distribution, logistics, healthcare, apparel, and tire, etc. The Power Solution segment is involved in the power and water related businesses, including power generation and transmission, power trading and retail, and development of hydrogen energy sources. Its Urban Development segment engages in the leasing; and urban development, infrastructure, and real estate development, operation, and management businesses. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.

About Sumitomo

Sumitomo Corporation engages in general trading business worldwide. It operates through six segments: Metal Products; Transportation & Construction Systems; Infrastructure; Media & Digital; Living Related & Real Estate; and Mineral Resources, Energy, Chemical & Electronics. The company provides steel sheets and tubular products; and manufactures, leases, sells, services, and finances ships, aircrafts, motor vehicles, construction equipment, and components and parts. It is involved in the development of renewable energy projects comprising power generation and power plant engineering, procurement, and construction activities; electricity retail; industrial facilities and equipment, water, transportation systems and infrastructure, airports, smart city project, environmental solutions, and storage battery businesses; development and operation of industrial parks; arranging insurance; and provision of logistics services. In addition, the company engages in the cable television, 5G related technologies, programming distribution, movies, digital media and video content, TV shopping, and e-commerce businesses; cell phone, ICT platform, digital solution, and venture capital businesses; provision of smart communications infrastructure; operation of food supermarkets and drugstore chains; trade of cement and building materials; and real estate businesses. Further, it develops and trades in coal, iron ore, manganese, uranium, non-ferrous and precious metals, petroleum, natural gas and liquefied natural gas, and commodity derivative transactions; trades in non-ferrous metal products, liquefied petroleum gas, storage batteries, carbon products, plastics, organic and inorganic chemicals, silicon wafers, LEDs, pharmaceuticals, agricultural chemicals, household insecticides, fertilizers, and veterinary drugs; engages in the investing activities; and provides electronics manufacturing services. Sumitomo Corporation was incorporated in 1919 and is headquartered in Tokyo, Japan.