Head-To-Head Analysis: Hitachi Construction Machinery (OTCMKTS:HTCMY) versus Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY)

Dividends

Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.23 per share and has a dividend yield of 3.6%. Hitachi Construction Machinery pays an annual dividend of $1.23 per share and has a dividend yield of 2.3%. Nippon Yusen Kabushiki Kaisha pays out 16.9% of its earnings in the form of a dividend. Hitachi Construction Machinery pays out 22.6% 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. Nippon Yusen Kabushiki Kaisha is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Nippon Yusen Kabushiki Kaisha has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Hitachi Construction Machinery has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Valuation & Earnings

This table compares Nippon Yusen Kabushiki Kaisha and Hitachi Construction Machinery”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Yusen Kabushiki Kaisha	$16.54 billion	0.89	$1.51 billion	$1.36	4.71
Hitachi Construction Machinery	$9.74 billion	0.59	$643.73 million	$5.45	9.96

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Hitachi Construction Machinery. Nippon Yusen Kabushiki Kaisha is trading at a lower price-to-earnings ratio than Hitachi Construction Machinery, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nippon Yusen Kabushiki Kaisha and Hitachi Construction Machinery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Yusen Kabushiki Kaisha	18.28%	15.53%	10.26%
Hitachi Construction Machinery	6.10%	10.67%	4.73%

Summary

Nippon Yusen Kabushiki Kaisha beats Hitachi Construction Machinery on 9 of the 11 factors compared between the two stocks.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.

About Hitachi Construction Machinery

Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures and sells construction machineries worldwide. The company operates through two segments, Construction Machinery Business and Solution Business. It offers excavators and wheel loaders, hydraulic excavators, compaction equipment, and rigid dump trucks. The company also provides ICT construction solutions; ConSite that monitors machines' operational status and alarms by sending monthly operational reports, as well as notifies emergency alarms; Fleet management system, which offers real-time monitoring of dump truck for optimizing vehicle operations; and autonomous haulage system for autonomous operation of mining dump trucks. In addition, it provides parts and services; used equipment under the PREMIUM USED brand; machinery rental services under the PREMIUM RENTAL and REC brand names; and parts remanufacturing services. The company was incorporated in 1951 and is headquartered in Taito, Japan. Hitachi Construction Machinery Co., Ltd. is a subsidiary of Hitachi, Ltd.