Reviewing Alset (NASDAQ:AEI) & Sumitomo (OTCMKTS:SSUMY)

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

Analyst Recommendations

This is a breakdown of current recommendations for Alset and Sumitomo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alset	1	0	0	0	1.00
Sumitomo	0	0	0	2	4.00

Valuation and Earnings

This table compares Alset and Sumitomo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alset	$21.12 million	5.98	-$3.97 million	($1.05)	-3.08
Sumitomo	$47.89 billion	0.78	$3.75 billion	$3.37	9.19

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

Risk and Volatility

Alset has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Sumitomo has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares Alset and Sumitomo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alset	-77.86%	-14.31%	-13.45%
Sumitomo	8.31%	12.49%	5.25%

Institutional & Insider Ownership

2.7% of Alset shares are owned by institutional investors. 90.3% of Alset shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Sumitomo beats Alset on 9 of the 13 factors compared between the two stocks.

About Alset

Alset Inc. engages in the real estate development, financial services, digital transformation technologies, biohealth activities, and consumer products businesses in the United States, Singapore, Hong Kong, Australia, and South Korea. It operates through four segments: Real Estate, Digital Transformation Technology, Biohealth, and Other Business Activities segments. The Real Estate segment develops property projects and participates in third-party property development projects; and owns, operates, and manages real estate development projects with a focus on land subdivision developments and house rental projects. Its Digital Transformation Technology segment provides support, implementation, and development services with various technologies, including blockchain, e-commerce, social media, and artificial intelligent customer service application and metaverse services. Its technology platform focuses on business-to-business solutions, such as communications and workflow through instant messaging systems, social media, e-commerce and payment systems, direct marketing platforms, e-real estate, brand protection, and counterfeit and fraud detection; and mobile application product development and other businesses, including information technology services to end-users, service providers, and other commercial users through multiple platforms. The Biohealth segment engages in developing, researching, testing, manufacturing, licensing, and distributing biohealth products and services. Its Other Business Activities segment offers corporate strategy and business development, asset management, corporate restructuring, and leveraged buy-out expertise services. It operates cafes in Singapore and South Korea. The company was formerly known as Alset EHome International Inc. and changed its name to Alset Inc. in October 2022. The company was incorporated in 2018 and is headquartered in Bethesda, Maryland.

About Sumitomo

Sumitomo Corporation engages in general trading business worldwide. It operates through six segments: Metal Products; Transportation & Construction Systems; Infrastructure; Media & Digital; Living Related & Real Estate; and Mineral Resources, Energy, Chemical & Electronics. The company provides steel sheets and tubular products; and manufactures, leases, sells, services, and finances ships, aircrafts, motor vehicles, construction equipment, and components and parts. It is involved in the development of renewable energy projects comprising power generation and power plant engineering, procurement, and construction activities; electricity retail; industrial facilities and equipment, water, transportation systems and infrastructure, airports, smart city project, environmental solutions, and storage battery businesses; development and operation of industrial parks; arranging insurance; and provision of logistics services. In addition, the company engages in the cable television, 5G related technologies, programming distribution, movies, digital media and video content, TV shopping, and e-commerce businesses; cell phone, ICT platform, digital solution, and venture capital businesses; provision of smart communications infrastructure; operation of food supermarkets and drugstore chains; trade of cement and building materials; and real estate businesses. Further, it develops and trades in coal, iron ore, manganese, uranium, non-ferrous and precious metals, petroleum, natural gas and liquefied natural gas, and commodity derivative transactions; trades in non-ferrous metal products, liquefied petroleum gas, storage batteries, carbon products, plastics, organic and inorganic chemicals, silicon wafers, LEDs, pharmaceuticals, agricultural chemicals, household insecticides, fertilizers, and veterinary drugs; engages in the investing activities; and provides electronics manufacturing services. Sumitomo Corporation was incorporated in 1919 and is headquartered in Tokyo, Japan.