Comparing Mitsubishi Chemical (MTLHY) and Leucadia National (LUK)

Mitsubishi Chemical (OTCMKTS: MTLHY) and Leucadia National (NYSE:LUK) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Dividends

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Mitsubishi Chemical pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. Leucadia National pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Mitsubishi Chemical pays out 10.0% of its earnings in the form of a dividend. Leucadia National pays out 24.2% 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.

Valuation and Earnings

This table compares Mitsubishi Chemical and Leucadia National’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitsubishi Chemical $31.23 billion 0.47 $1.45 billion $4.82 10.16
Leucadia National $11.44 billion 0.75 $171.72 million $1.65 14.56

Mitsubishi Chemical has higher revenue and earnings than Leucadia National. Mitsubishi Chemical is trading at a lower price-to-earnings ratio than Leucadia National, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Mitsubishi Chemical and Leucadia National, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitsubishi Chemical 0 0 0 0 N/A
Leucadia National 0 0 0 0 N/A

Risk & Volatility

Mitsubishi Chemical has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Leucadia National has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Mitsubishi Chemical and Leucadia National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitsubishi Chemical N/A N/A N/A
Leucadia National 1.81% 6.25% 1.39%

Institutional and Insider Ownership

0.0% of Mitsubishi Chemical shares are held by institutional investors. Comparatively, 75.6% of Leucadia National shares are held by institutional investors. 10.2% of Leucadia National shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Leucadia National beats Mitsubishi Chemical on 8 of the 12 factors compared between the two stocks.

Mitsubishi Chemical Company Profile

Mitsubishi Chemical Holdings Corporation engages in the performance products, industrial materials, and health care businesses in Japan and internationally. It operates in five segments: Electronics Applications, Designed Materials, Health Care, Chemicals, and Polymers. The company offers thermoplastic elastomer, phenol and polycarbonate, bio-based engineering plastic, and polybutylene terephthalate products; acrylic and epoxy resins, sugar esters, and resin additives; optical clear adhesive sheets and films, optical polyvinyl alcohol films, color resists, and precision cleaning products; food packaging and acrylic, and sanitary films, as well as moisture-proof polyvinyl chloride sheets for tablet and capsule packaging; and artificial light-type plant growing systems, and fiber reinforced plastic and stainless steel panel water tanks, as well as water treatment components, equipment, and facilities. It also provides engineering plastics, carbon fiber and composite materials, alumina fibers, functional moldings and composites, and fibers and textiles; lithium-ion battery materials, phosphors, and scintillators; ethylene glycols, chemical derivatives, and polyethylene gasoline tanks; coke, carbon black, synthetic rubber, and carbon materials; methyl methacrylate monomers, acrylic molding materials, and acrylic sheets; oxygen, nitrogen, argon, and electronics material gases; and air separation units. In addition, the company offers treatment agents for autoimmune diseases; therapeutic agents for amyotrophic lateral sclerosis; vaccines, compact immunoanalyzers, capsules, diagnostic reagents and instruments, pharmaceutical equipment, and active pharmaceutical ingredients and intermediates; and self-health check services. Further, it provides computer peripheral and polymer processing products; and clinical testing and drug development, logistic and warehouse, and engineering and construction services. The company was founded in 2005 and is headquartered in Tokyo, Japan.

Leucadia National Company Profile

Leucadia National Corporation operates as a diversified holding company that focuses on financial service businesses and investments in the Americas, Europe, and Asia. Its services include equities research, sales, and trading; financing, securities lending, and other brokerage; wealth management; fixed income sales and trading; futures; equity capital markets, debt capital markets, and financial advisory; and asset management services. The company also provides online foreign exchange trading, contract for difference trading, spread betting, and related services. In addition, it develops and owns residential and mixed-use real estate properties in California, New York, Florida, Virginia, South Carolina, and Maine; provides capital solutions, investment sales advisory, and mortgage servicing for multifamily and commercial properties; and purchases automobile installment contracts, as well as owns and manages a portfolio of leases on used Harley-Davidson motorcycles. Further, it processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer-ready beef and pork, and wet blue leather; oil and gas properties in the Bakken Shale oil field in North Dakota and Montana, and the Denver-Julesburg Basin in Wyoming; owns and operates 28 automobile dealerships; offers fixed wireless broadband services in Italy; manufactures and markets plastic netting and wood products; and mines gold and silver ores. The company was formerly known as Talcott National Corp. and changed its name to Leucadia National Corporation in June 1980. Leucadia National Corporation was founded in 1968 and is headquartered in New York, New York.

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