Hitachi Construction Machinery (OTCMKTS:HTCMY) versus BAE Systems (OTCMKTS:BAESY) Financial Review

Hitachi Construction Machinery (OTCMKTS:HTCMY) and BAE Systems (OTCMKTS:BAESY) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

0.2% of BAE Systems shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Hitachi Construction Machinery has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, BAE Systems has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Dividends

Hitachi Construction Machinery pays an annual dividend of $1.23 per share and has a dividend yield of 2.4%. BAE Systems pays an annual dividend of $1.26 per share and has a dividend yield of 1.5%. Hitachi Construction Machinery pays out 22.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Hitachi Construction Machinery and BAE Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitachi Construction Machinery	0	0	0	0	0.00
BAE Systems	1	0	1	0	2.00

Valuation and Earnings

This table compares Hitachi Construction Machinery and BAE Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitachi Construction Machinery	$9.74 billion	0.57	$643.73 million	$5.45	9.52
BAE Systems	$28.48 billion	2.29	$2.12 billion	N/A	N/A

BAE Systems has higher revenue and earnings than Hitachi Construction Machinery.

Profitability

This table compares Hitachi Construction Machinery and BAE Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitachi Construction Machinery	6.10%	10.67%	4.73%
BAE Systems	N/A	N/A	N/A

Summary

BAE Systems beats Hitachi Construction Machinery on 7 of the 12 factors compared between the two stocks.

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.

About BAE Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.