Critical Review: JFE (OTCMKTS:JFEEF) vs. HENNES & MAURIT/ADR (OTCMKTS:HNNMY)

JFE (OTCMKTS:JFEEF) and HENNES & MAURIT/ADR (OTCMKTS:HNNMY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for JFE and HENNES & MAURIT/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JFE 0 0 0 0 N/A
HENNES & MAURIT/ADR 0 0 1 0 3.00

Dividends

HENNES & MAURIT/ADR pays an annual dividend of $0.07 per share and has a dividend yield of 2.0%. JFE does not pay a dividend. HENNES & MAURIT/ADR pays out 38.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.1% of HENNES & MAURIT/ADR shares are held by institutional investors. 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 JFE and HENNES & MAURIT/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JFE 3.97% 8.19% 3.71%
HENNES & MAURIT/ADR 5.42% 21.20% 9.78%

Valuation & Earnings

This table compares JFE and HENNES & MAURIT/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JFE $33.22 billion 0.24 $1.30 billion $2.32 6.02
HENNES & MAURIT/ADR $24.23 billion 1.21 $1.47 billion $0.18 19.67

HENNES & MAURIT/ADR has lower revenue, but higher earnings than JFE. JFE is trading at a lower price-to-earnings ratio than HENNES & MAURIT/ADR, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

JFE has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, HENNES & MAURIT/ADR has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Summary

HENNES & MAURIT/ADR beats JFE on 10 of the 13 factors compared between the two stocks.

JFE Company Profile

JFE Holdings, Inc. operates as a holding company which provides strategic planning, risk management, accountability and corporate communications for all the subsidiaries and affiliates. It operates through the following segments: Steel, Engineering and Commercial Affairs. The Steel segment includes steel products, steel processing products, and raw materials. It also handles equipment maintenance and construction and the transportation industry. The Engineering segment provides engineering services for energy, urban environment, recycling, steel manufacturing, and industrial systems. The Commercial Affairs segment processes, supplies, and sells steel products, raw steel materials, and non-ferrous metal products. The company was founded on September 27, 2002 and is headquartered in Tokyo, Japan.

HENNES & MAURIT/ADR Company Profile

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, and cosmetics for women, men, teenagers, children, and babies worldwide. It offers sportswear, underwear, shoes, bags, beauty products, stationery, ready-to-wear, jeans, home textiles, and homeware; and interior products for living rooms, kitchens, bedrooms, bathrooms, and kids' rooms. The company provides its products under the H&M, COS, Weekday, Cheap Monday, Monki, H&M Home, & Other Stories, ARKET, and Afound. As of March 29, 2018, it had approximately 4,900 stores in 72 markets, including franchise markets; and 47 online markets. H & M Hennes & Mauritz AB (publ) was founded in 1947 and is headquartered in Stockholm, Sweden.

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