Contrasting Hitachi (HTHIY) & Fluor Co. (NEW) (FLR)

Hitachi (OTCMKTS: HTHIY) and Fluor Co. (NEW) (NYSE:FLR) are both multi-sector conglomerates companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

0.3% of Hitachi shares are held by institutional investors. Comparatively, 89.5% of Fluor Co. (NEW) shares are held by institutional investors. 1.4% of Fluor Co. (NEW) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Hitachi and Fluor Co. (NEW)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hitachi 3.87% 9.91% 4.33%
Fluor Co. (NEW) 0.58% 11.08% 3.98%

Valuation & Earnings

This table compares Hitachi and Fluor Co. (NEW)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hitachi $88.38 billion 0.39 $3.42 billion $7.40 9.63
Fluor Co. (NEW) $19.52 billion 0.35 $191.37 million $1.63 29.72

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

Dividends

Hitachi pays an annual dividend of $1.25 per share and has a dividend yield of 1.8%. Fluor Co. (NEW) pays an annual dividend of $0.84 per share and has a dividend yield of 1.7%. Hitachi pays out 16.9% of its earnings in the form of a dividend. Fluor Co. (NEW) pays out 51.5% 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. Hitachi is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Hitachi has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Fluor Co. (NEW) has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hitachi and Fluor Co. (NEW), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hitachi 0 0 0 0 N/A
Fluor Co. (NEW) 0 11 5 0 2.31

Fluor Co. (NEW) has a consensus price target of $53.27, suggesting a potential upside of 7.57%. Given Fluor Co. (NEW)’s higher probable upside, analysts clearly believe Fluor Co. (NEW) is more favorable than Hitachi.

Summary

Hitachi beats Fluor Co. (NEW) on 8 of the 15 factors compared between the two stocks.

Hitachi Company Profile

Hitachi, Ltd. provides information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and ecofriendly systems, other products, and financial services worldwide. The company's Information & Telecommunication Systems segment offers systems integration, consulting, and cloud services; and servers, storage products, software, telecommunications and network equipment, and ATMs. Its Social Infrastructure & Industrial Systems segment provides industrial machinery and plants, elevators, escalators, and railway systems; and thermal, nuclear, and renewable energy power generation systems, and transmission and distribution systems. The company's Electronic Systems & Equipment segment offers semiconductor processing equipment, test and measurement equipment, industrial products, medical electronics equipment, and power tools. Its Construction Machinery segment provides hydraulic excavators, wheel loaders, and mining machinery. The company's High Functional Materials & Components segment offers semiconductor and display related materials, circuit boards and materials, automotive parts, energy storage devices, specialty steels, magnetic materials and components, casting components and materials, and wires and cables. Its Automotive Systems segment provides engine management, electric power train, drive control, and car information systems. The company's Smart Life & Ecofriendly Systems segment offers air-conditioning equipment, room air conditioners, refrigerators, and washing machines. Its Others segment provides optical disk drives, property management, and others. The company's Financial Services segment offers leasing and loan guarantee services. Hitachi, Ltd. has collaboration with the University of Utah Health and Mitsubishi Tanabe Pharma Corp. The company was founded in 1910 and is headquartered in Tokyo, Japan.

Fluor Co. (NEW) Company Profile

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, and project management services worldwide. It operates through four segments: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Diversified Services; and Government. The Energy, Chemicals & Mining segment offers a range of design, engineering, procurement, construction, fabrication, and project management services to upstream, midstream, downstream, chemical, petrochemical, offshore and onshore oil and gas production, liquefied natural gas, pipeline, and metals and mining markets. It also provides consulting services, such as feasibility studies, process assessment, and project finance structuring and studies. The Industrial, Infrastructure & Power segment offers design, engineering, procurement, construction, and project management services to the transportation, life sciences, manufacturing, water, and power sectors. The Diversified Services segment provides facility start-up and management, plant and facility maintenance, operations support, and asset management services to the oil and gas, chemicals, life sciences, mining and metals, consumer products, and manufacturing industries. The Government segment offers engineering, construction, logistics, base and facilities operations and maintenance, contingency response, and environmental and nuclear services to the United States government, as well as governments internationally. This segment also provides engineering and construction services, logistics, and life-support services, as well as contingency operations support services to the defense sector. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

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