Head-To-Head Analysis: DuPont de Nemours (NYSE:DD) and Hitachi (OTCMKTS:HTHIY)

Hitachi (OTCMKTS:HTHIY) and DuPont de Nemours (NYSE:DD) are both large-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations for Hitachi and DuPont de Nemours, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitachi	0	0	1	2	3.67
DuPont de Nemours	1	5	11	1	2.67

DuPont de Nemours has a consensus price target of $162.00, indicating a potential upside of 20.03%. Given DuPont de Nemours’ higher possible upside, analysts clearly believe DuPont de Nemours is more favorable than Hitachi.

Dividends

Hitachi pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. DuPont de Nemours pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Hitachi pays out 19.8% of its earnings in the form of a dividend. DuPont de Nemours pays out 533.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Hitachi and DuPont de Nemours”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitachi	$70.33 billion	2.38	$5.30 billion	$1.16	31.75
DuPont de Nemours	$6.85 billion	2.66	-$779.00 million	$0.45	299.92

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

Volatility and Risk

Hitachi has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, DuPont de Nemours has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Insider and Institutional Ownership

0.3% of Hitachi shares are held by institutional investors. Comparatively, 74.0% of DuPont de Nemours shares are held by institutional investors. 1.0% of DuPont de Nemours shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Hitachi and DuPont de Nemours’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitachi	7.30%	12.07%	5.43%
DuPont de Nemours	0.67%	6.92%	4.44%

Summary

Hitachi beats DuPont de Nemours on 9 of the 17 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 DuPont de Nemours

DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.