Reviewing Marubeni (OTCMKTS:MARUY) & Scully Royalty (NYSE:SRL)

Marubeni (OTCMKTS:MARUY) and Scully Royalty (NYSE:SRL) are both multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Marubeni and Scully Royalty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marubeni	0	1	1	0	2.50
Scully Royalty	1	0	0	0	1.00

Dividends

Marubeni pays an annual dividend of $5.02 per share and has a dividend yield of 1.3%. Scully Royalty pays an annual dividend of $0.26 per share and has a dividend yield of 3.5%. Marubeni pays out 24.2% of its earnings in the form of a dividend. Scully Royalty has increased its dividend for 1 consecutive years. Scully Royalty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Marubeni and Scully Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marubeni	6.21%	12.96%	5.46%
Scully Royalty	N/A	N/A	N/A

Insider and Institutional Ownership

0.1% of Marubeni shares are held by institutional investors. Comparatively, 42.0% of Scully Royalty shares are held by institutional investors. 1.9% of Scully Royalty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Marubeni has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Scully Royalty has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Earnings & Valuation

This table compares Marubeni and Scully Royalty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marubeni	$51.16 billion	1.22	$3.32 billion	$20.78	18.19
Scully Royalty	$35.77 million	3.11	-$15.02 million	N/A	N/A

Marubeni has higher revenue and earnings than Scully Royalty.

About Marubeni

Marubeni Corporation engages in various business activities. It manufactures, wholesales, and retails apparel, footwear, home furnishing and sport goods, industrial and textile materials, tire and rubber materials, and household and nursing care products; develops uranium, nuclear fuel cycle, iron ore, coking coal, copper mines, and related equipment and services; smelts and refines aluminum and magnesium; leases temporary steel construction materials; explores for, develops, and produces oil and gas; manages infrastructure funds; and develops and manages real estate. The company also offers insurance, technical, ICT, and logistic services; agri-inputs; fertilizer and crop protection product contracting services; crop protection product formulations; wood chips, biomass fuels, pulp and waste papers, paper, paperboards, sanitary, and building and construction materials; engineering, procurement, and construction services; and operation and maintenance services. It trades in fertilizers, dairy, agricultural, and marine products; sugar, processed food, beverages raw materials, and commercial use food materials; grains, oilseeds, feed ingredients, compound feeds, fresh and processed meat, petrochemicals, plastics, salts, chlor-alkalis, life science products, electronic materials, fertilizer materials, and inorganic mineral resources and chemicals; steelmaking raw materials, ferroalloys, nonferrous metals, and steel products; cement and ingots related materials; and petroleum and LPG. The company engages in infrastructure; water; automotive finance; power generation; power service and retail; natural gas; hydrogen; and fuel ammonia businesses. It owns, purchases, operates, leases, sells, and charters aerospace and ship products; leases refrigerated trailers, commercial vehicles, and freight cars; and sells, trades in, leases, finances, and services construction and industrial machinery, and mobility products. The company was founded in 1858 and is based in Tokyo, Japan.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.