Head-To-Head Review: Hitachi Construction Machinery (OTCMKTS:HTCMY) vs. Assa Abloy (OTC:ASAZY)

Assa Abloy (OTC:ASAZY) and Hitachi Construction Machinery (OTCMKTS:HTCMY) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Risk & Volatility

Assa Abloy has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Hitachi Construction Machinery has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Dividends

Assa Abloy pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. Hitachi Construction Machinery pays an annual dividend of $1.23 per share and has a dividend yield of 2.1%. Assa Abloy pays out 23.9% of its earnings in the form of a dividend. Hitachi Construction Machinery pays out 22.6% 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. Hitachi Construction Machinery is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Assa Abloy and Hitachi Construction Machinery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Assa Abloy	10.38%	15.25%	7.26%
Hitachi Construction Machinery	6.10%	10.67%	4.73%

Analyst Recommendations

This is a summary of current ratings and target prices for Assa Abloy and Hitachi Construction Machinery, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Assa Abloy	1	0	0	0	1.00
Hitachi Construction Machinery	0	0	0	0	0.00

Earnings and Valuation

This table compares Assa Abloy and Hitachi Construction Machinery”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Assa Abloy	$14.20 billion	2.26	$1.48 billion	$0.67	21.49
Hitachi Construction Machinery	$9.74 billion	0.63	$643.73 million	$5.45	10.55

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

Summary

Assa Abloy beats Hitachi Construction Machinery on 9 of the 12 factors compared between the two stocks.

About Assa Abloy

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.

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.