Head-To-Head Review: Haier Electronics Group (OTCMKTS:HRELY) and Grupo Carso (OTCMKTS:GPOVY)

Valuation and Earnings

This table compares Haier Electronics Group and Grupo Carso”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haier Electronics Group	$10.98 billion	1.15	$1.06 billion	$2.11	21.27
Grupo Carso	$9.03 billion	1.77	$947.38 million	$0.93	15.20

Haier Electronics Group has higher revenue and earnings than Grupo Carso. Grupo Carso is trading at a lower price-to-earnings ratio than Haier Electronics Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Haier Electronics Group pays an annual dividend of $0.58 per share and has a dividend yield of 1.3%. Grupo Carso pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Haier Electronics Group pays out 27.5% of its earnings in the form of a dividend. Grupo Carso pays out 12.9% 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.

Profitability

This table compares Haier Electronics Group and Grupo Carso’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Haier Electronics Group	N/A	N/A	N/A
Grupo Carso	10.04%	14.79%	8.41%

Volatility and Risk

Haier Electronics Group has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Grupo Carso has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Summary

Haier Electronics Group beats Grupo Carso on 6 of the 11 factors compared between the two stocks.

About Haier Electronics Group

As of December 21, 2020, operates as a subsidiary of Haier Smart Home Co., Ltd.

About Grupo Carso

Grupo Carso, S.A.B. de C.V., together with its subsidiaries, engages in the commercial, industrial, infrastructure and construction, and energy sectors. It operates through Commercial and Consumer, Industrial and Manufacturing, Infrastructure and Construction, and Energy divisions. The company's Commercial and Consumption division operates department stores and boutiques, gift shops, restaurants, coffee shops, electronics, and technology and games stores under the Sears, Sanborns, iShop, Mixup, Claro Shop, and Saks Fifth Avenue brands. The company's Industrial and Manufacturing division provides cables, such as energy, telecommunication, electronic, coaxial, and fiber optics for application in mining, automotive, and other; electric harnesses for automotive industry; precision steel tubing; power transformers; and alternate energy. It serves customers under the Condumex, Latincasa, Vinanel, Condulac, IEM, Precitubo, Sitcom, Microm, Sinergia, Equiter, and Logtec brands. The company's Infrastructure and Construction division constructs roads, tunnels, water treatment plants, and general infrastructure works; oil and geothermic well drilling and drilling services; and oil platforms and equipment for chemical and petroleum industries. It also constructs commercial centers, industrial plants, and office building and houses; and telecommunication facilities, gas pipelines, and aqueducts under the CICSA, Swecomex, Bronco Drilling, Cilsa, GSM, PC Construcciones, and Urvitec brands. The company's Energy division engages in the gas transportation services; and exploration and production of oil, gas, and other hydrocarbons, as well as explores geothermal energy under the Carso Energy, Carso Oil & Gas, and Carso Electric brands. It serves customers in Mexico; Central America, South America, and the Caribbean; the United States; Europe; and internationally. Grupo Carso, S.A.B. de C.V. is incorporated in 1980 and is headquartered in Mexico City, Mexico.