Comparing Hitachi (OTCMKTS:HTHIY) and Carlisle Companies (NYSE:CSL)

Carlisle Companies (NYSE:CSL) and Hitachi (OTCMKTS:HTHIY) are both large-cap multi-sector conglomerates companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Profitability

This table compares Carlisle Companies and Hitachi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carlisle Companies	14.76%	41.58%	14.17%
Hitachi	8.05%	13.27%	5.96%

Dividends

Carlisle Companies pays an annual dividend of $4.40 per share and has a dividend yield of 1.3%. Hitachi pays an annual dividend of $0.19 per share and has a dividend yield of 0.6%. Carlisle Companies pays out 25.7% of its earnings in the form of a dividend. Hitachi pays out 12.8% 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. Carlisle Companies has raised its dividend for 48 consecutive years. Carlisle Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Carlisle Companies and Hitachi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carlisle Companies	0	7	4	0	2.36
Hitachi	0	2	0	1	2.67

Carlisle Companies presently has a consensus price target of $399.17, indicating a potential upside of 21.70%. Given Carlisle Companies’ higher probable upside, equities analysts plainly believe Carlisle Companies is more favorable than Hitachi.

Risk & Volatility

Carlisle Companies has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Hitachi has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Insider & Institutional Ownership

89.5% of Carlisle Companies shares are owned by institutional investors. Comparatively, 0.3% of Hitachi shares are owned by institutional investors. 1.4% of Carlisle Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Carlisle Companies and Hitachi”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carlisle Companies	$5.02 billion	2.67	$740.70 million	$17.11	19.17
Hitachi	$64.25 billion	2.09	$4.06 billion	$1.48	19.78

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

Summary

Carlisle Companies beats Hitachi on 12 of the 18 factors compared between the two stocks.

About Carlisle Companies

Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, Asia and the Middle East, Africa, and internationally. It operates through two segments: Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company produces single-ply roofing products, and warranted roof systems and accessories, including ethylene propylene diene monomer, thermoplastic polyolefin and polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. It also offers building envelope solutions, including high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems, block-molded expanded polystyrene insulation, and engineered products for HVAC applications. It sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.

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.