Shin-Etsu Chemical (OTCMKTS:SHECY) and H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY) Head to Head Survey

H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY) and Shin-Etsu Chemical (OTCMKTS:SHECY) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Dividends

H & M Hennes & Mauritz AB (publ) pays an annual dividend of $0.07 per share and has a dividend yield of 2.7%. Shin-Etsu Chemical pays an annual dividend of $0.23 per share and has a dividend yield of 1.5%. H & M Hennes & Mauritz AB (publ) pays out 50.0% of its earnings in the form of a dividend. Shin-Etsu Chemical pays out 25.6% 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.

Volatility and Risk

H & M Hennes & Mauritz AB (publ) has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Shin-Etsu Chemical has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of H & M Hennes & Mauritz AB (publ) shares are owned by institutional investors. Comparatively, 0.0% of Shin-Etsu Chemical shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares H & M Hennes & Mauritz AB (publ) and Shin-Etsu Chemical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H & M Hennes & Mauritz AB (publ)	4.93%	26.25%	6.45%
Shin-Etsu Chemical	21.64%	11.24%	9.72%

Valuation and Earnings

This table compares H & M Hennes & Mauritz AB (publ) and Shin-Etsu Chemical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H & M Hennes & Mauritz AB (publ)	$22.18 billion	0.84	$1.10 billion	$0.14	18.86
Shin-Etsu Chemical	$16.73 billion	3.58	$3.44 billion	$0.90	16.74

Shin-Etsu Chemical has lower revenue, but higher earnings than H & M Hennes & Mauritz AB (publ). Shin-Etsu Chemical is trading at a lower price-to-earnings ratio than H & M Hennes & Mauritz AB (publ), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for H & M Hennes & Mauritz AB (publ) and Shin-Etsu Chemical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H & M Hennes & Mauritz AB (publ)	1	1	2	1	2.60
Shin-Etsu Chemical	0	0	0	0	0.00

Summary

H & M Hennes & Mauritz AB (publ) beats Shin-Etsu Chemical on 8 of the 15 factors compared between the two stocks.

About H & M Hennes & Mauritz AB (publ)

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

About Shin-Etsu Chemical

Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. It is also involved in processing and specialized related services. The company operates through Infrastructure Materials; Electronics Materials; Functional Materials; and Processing and Specialized Services segments. In addition, it offers cellulose derivatives, synthetic pheromones, aroma chemicals, dielectric and LED/ semiconductor materials, silanes, photoresists, chlorides, caustic soda, liquid fluoroelastomers, polyvinyl chloride and vinyl acetate resin, silicones, and silicones processed goods. Further, the company offers pellicles, photomask blanks, synthetic quartz/ quartz cloth, pyrolytic boron nitride, LIB anode material, and silicon metal. Additionally, it provides rare earth magnets, compound semiconductors, and oxide single crystals. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. Shin-Etsu Chemical Co., Ltd. was incorporated in 1926 and is headquartered in Tokyo, Japan.