Critical Contrast: Hitachi (OTCMKTS:HTHIY) versus Great Elm Group (NASDAQ:GEG)

Great Elm Group (NASDAQ:GEG) and Hitachi (OTCMKTS:HTHIY) are both multi-sector conglomerates companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Valuation & Earnings

This table compares Great Elm Group and Hitachi”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Great Elm Group	$16.32 million	5.14	$12.89 million	N/A	N/A
Hitachi	$64.25 billion	2.26	$4.06 billion	$2.23	14.18

Hitachi has higher revenue and earnings than Great Elm Group.

Institutional and Insider Ownership

52.8% of Great Elm Group shares are owned by institutional investors. Comparatively, 0.3% of Hitachi shares are owned by institutional investors. 49.7% of Great Elm Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Great Elm Group and Hitachi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Elm Group	0	1	0	0	2.00
Hitachi	0	2	0	0	2.00

Volatility and Risk

Great Elm Group has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Hitachi has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Profitability

This table compares Great Elm Group and Hitachi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Great Elm Group	13.94%	-13.12%	-6.71%
Hitachi	7.98%	13.10%	5.86%

Summary

Hitachi beats Great Elm Group on 5 of the 9 factors compared between the two stocks.

About Great Elm Group

Great Elm Group, Inc. operates as a asset management company. The company engages in credit, real estate, and finance businesses. It is also involved in business development related activities and offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was incorporated in 1994 and is headquartered in Waltham, Massachusetts.

About Hitachi

Hitachi, Ltd. provides digital system and services, green energy and mobility, and connective industry solutions in Japan and internationally. It operates through seven segments: Digital Systems & Services, Green Energy & Mobility, Connective Industries, Automotive System, Hitachi Construction Machinery, Hitachi Metals, and Others. The company offers system integration, consulting, cloud services, storage, servers, and ATMs; finance solutions, social infrastructure information systems, government and public corporation information system, big data and AI, and IoT and data management; and IT products. It also operates power grids, nuclear and clear energy, renewable energy; provides energy management services and distributed power source solutions; semiconductors; elevators and escalators; air conditioners; industrial equipment; and railway systems. In addition, the company offers medical equipment for radiation therapy, In-vitro diagnosis, and regenerative medicines; automotive systems; home appliances; and water treatment solutions for water supply and sewage infrastructure, industrial water treatment, seawater desalination, and water recycling, as well as maintenance and repair services. Further, it hydraulic excavators, wheel loaders, mining machinery, construction solutions, and mine management systems. Additionally, the company offers specialty steel, functional components and equipment, power electronic and magnetic materials, wires, and cable and related products; optical disk drives; and property management services. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan.