Critical Survey: Icahn Enterprises (NASDAQ:IEP) & Jardine Matheson (OTCMKTS:JMHLY)

Icahn Enterprises (NASDAQ:IEP) and Jardine Matheson (OTCMKTS:JMHLY) are both multi-sector conglomerates companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Profitability

This table compares Icahn Enterprises and Jardine Matheson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Icahn Enterprises	-3.24%	-10.27%	-2.28%
Jardine Matheson	N/A	N/A	N/A

Institutional and Insider Ownership

87.1% of Icahn Enterprises shares are owned by institutional investors. 90.1% of Icahn Enterprises shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Icahn Enterprises and Jardine Matheson, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Icahn Enterprises	1	1	0	0	1.50
Jardine Matheson	0	0	1	1	3.50

Jardine Matheson has a consensus price target of $90.00, suggesting a potential upside of 47.75%. Given Jardine Matheson’s stronger consensus rating and higher probable upside, analysts plainly believe Jardine Matheson is more favorable than Icahn Enterprises.

Dividends

Icahn Enterprises pays an annual dividend of $2.00 per share and has a dividend yield of 27.3%. Jardine Matheson pays an annual dividend of $3.36 per share and has a dividend yield of 5.5%. Icahn Enterprises pays out -384.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Icahn Enterprises and Jardine Matheson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Icahn Enterprises	$9.66 billion	0.51	-$299.00 million	($0.52)	-14.11
Jardine Matheson	$34.22 billion	0.52	$1.11 billion	N/A	N/A

Jardine Matheson has higher revenue and earnings than Icahn Enterprises.

Volatility & Risk

Icahn Enterprises has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Jardine Matheson has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Summary

Jardine Matheson beats Icahn Enterprises on 10 of the 15 factors compared between the two stocks.

About Icahn Enterprises

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services. The Energy segment refines and markets transportation fuels in the form of gasoline and diesel fuels, as well as renewable diesel; and manufactures nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment sells automotive parts and materials, and retailed merchandise; offers automotive repair and maintenance services; and leases real estate properties. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings that are used to prepare and package processed meat products. The Real Estate segment is involved in the leasing of land, retail, office, and industrial properties; the development and sale of single-family homes; and the operation of country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.

About Jardine Matheson

Jardine Matheson Holdings Limited, through its subsidiaries, operates in motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, and transport businesses in China, Southeast Asia, and internationally. It also involved in the restaurants and hotels, financial services, heavy equipment, mining, and agribusinesses. The company offers automotive and transport services, as well as invests in, develops, and manages residential, commercial, and mixed-use properties. It also operates 7-Eleven, IKEA, and other retailing business, as well as Pizza Hut and KFC franchise restaurants; and invests in and manages hotels, resorts, and residences, as well as engages in construction and energy, infrastructure and logistics, and information technology businesses. In addition, the company sells and services motor vehicles; invests in, owns, develops, and manages office and retail properties; operates outlets, including supermarkets, hypermarkets, health and beauty stores, and home furnishings stores. Further, it engages in the automotive dealerships business. Additionally, the company invests in digital business, such as Halodoc, a healthtech online ecosystem; Sayurbox, an e-commerce grocery platform; Paxel, a technology-based logistics business; and OLX, a used car platform. Jardine Matheson Holdings Limited was founded in 1832 and is based in Hamilton, Bermuda.