Reviewing Hitachi (OTCMKTS:HTHIY) & Benev Capital (OTCMKTS:BEVFF)

Hitachi (OTCMKTS:HTHIY) and Benev Capital (OTCMKTS:BEVFF) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Risk & Volatility

Hitachi has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Benev Capital has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Hitachi and Benev Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitachi	0	2	0	0	2.00
Benev Capital	0	1	0	0	2.00

Earnings and Valuation

This table compares Hitachi and Benev Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitachi	$64.25 billion	2.28	$4.06 billion	$2.23	14.35
Benev Capital	$47.44 million	9.75	$19.43 million	$0.13	20.89

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

Profitability

This table compares Hitachi and Benev Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitachi	7.98%	13.10%	5.86%
Benev Capital	43.17%	12.47%	6.04%

Dividends

Hitachi pays an annual dividend of $0.19 per share and has a dividend yield of 0.6%. Benev Capital pays an annual dividend of $0.20 per share and has a dividend yield of 7.4%. Hitachi pays out 8.5% of its earnings in the form of a dividend. Benev Capital pays out 153.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

0.3% of Hitachi shares are held by institutional investors. 12.0% of Benev Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Hitachi beats Benev Capital on 7 of the 13 factors compared between the two stocks.

About Hitachi

Hitachi, Ltd. provides digital system and services, green energy and mobility, and connective industry solutions in Japan and internationally. It operates through seven segments: Digital Systems & Services, Green Energy & Mobility, Connective Industries, Automotive System, Hitachi Construction Machinery, Hitachi Metals, and Others. The company offers system integration, consulting, cloud services, storage, servers, and ATMs; finance solutions, social infrastructure information systems, government and public corporation information system, big data and AI, and IoT and data management; and IT products. It also operates power grids, nuclear and clear energy, renewable energy; provides energy management services and distributed power source solutions; semiconductors; elevators and escalators; air conditioners; industrial equipment; and railway systems. In addition, the company offers medical equipment for radiation therapy, In-vitro diagnosis, and regenerative medicines; automotive systems; home appliances; and water treatment solutions for water supply and sewage infrastructure, industrial water treatment, seawater desalination, and water recycling, as well as maintenance and repair services. Further, it hydraulic excavators, wheel loaders, mining machinery, construction solutions, and mine management systems. Additionally, the company offers specialty steel, functional components and equipment, power electronic and magnetic materials, wires, and cable and related products; optical disk drives; and property management services. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan.

About Benev Capital

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was founded in 1960 and is headquartered in Vancouver, Canada.