Head-To-Head Review: Mitsubishi Heavy Industries (MHVYF) versus Its Competitors

Mitsubishi Heavy Industries (OTCMKTS:MHVYF) is one of 436 public companies in the “Machinery” industry, but how does it compare to its peers? We will compare Mitsubishi Heavy Industries to related companies based on the strength of its institutional ownership, dividends, profitability, risk, earnings, analyst recommendations and valuation.

Volatility and Risk

Mitsubishi Heavy Industries has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Mitsubishi Heavy Industries’ peers have a beta of 5.12, indicating that their average share price is 412% more volatile than the S&P 500.

Institutional and Insider Ownership

51.8% of shares of all “Machinery” companies are held by institutional investors. 14.3% of shares of all “Machinery” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Mitsubishi Heavy Industries and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mitsubishi Heavy Industries	$33.04 billion	$2.19 billion	25.37
Mitsubishi Heavy Industries Competitors	$4.65 billion	$364.05 million	5.77

Mitsubishi Heavy Industries has higher revenue and earnings than its peers. Mitsubishi Heavy Industries is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Mitsubishi Heavy Industries and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Heavy Industries	7.04%	12.97%	4.99%
Mitsubishi Heavy Industries Competitors	-1,044.43%	-14.99%	0.58%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mitsubishi Heavy Industries and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Heavy Industries	0	1	1	1	3.00
Mitsubishi Heavy Industries Competitors	4208	14715	18243	808	2.41

As a group, “Machinery” companies have a potential upside of 31.66%. Given Mitsubishi Heavy Industries’ peers higher probable upside, analysts plainly believe Mitsubishi Heavy Industries has less favorable growth aspects than its peers.

Summary

Mitsubishi Heavy Industries beats its peers on 8 of the 13 factors compared.

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. is a Japan-based engineering and manufacturing company with roots in shipbuilding dating to 1884. It develops and supplies equipment, systems and services for industrial, commercial and public-sector customers in Japan and international markets. The company’s businesses include energy systems such as power-generation equipment, machinery and infrastructure, and logistics and thermal systems, including material-handling equipment and air-conditioning products. It also operates in aerospace and defense, with activities that include aircraft-related products, defense equipment and space systems.