Head to Head Analysis: Hitachi (OTCMKTS:HTHIY) and IAC (NASDAQ:IAC)

Hitachi (OTCMKTS:HTHIY) and IAC (NASDAQ:IAC) are both multi-sector conglomerates companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Hitachi and IAC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitachi	0	0	0	0	0.00
IAC	0	2	12	0	2.86

IAC has a consensus target price of $54.08, indicating a potential upside of 45.60%. Given IAC’s stronger consensus rating and higher possible upside, analysts plainly believe IAC is more favorable than Hitachi.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitachi	$64.25 billion	1.94	$4.04 billion	$3.59	7.59
IAC	$3.75 billion	0.73	-$539.90 million	($9.67)	-3.84

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

Volatility and Risk

Hitachi has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, IAC has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Institutional and Insider Ownership

0.3% of Hitachi shares are owned by institutional investors. Comparatively, 88.9% of IAC shares are owned by institutional investors. 16.1% of IAC shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hitachi	6.28%	10.35%	4.65%
IAC	-23.25%	-11.11%	-7.30%

Summary

Hitachi beats IAC on 8 of the 14 factors compared between the two stocks.

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.

About IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.