Reviewing Sumitomo (OTCMKTS:SSUMY) & Swire Pacific (OTCMKTS:SWRAY)

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

Volatility & Risk

Sumitomo has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Swire Pacific has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sumitomo and Swire Pacific”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo	$47.89 billion	0.87	$3.75 billion	$3.39	10.17
Swire Pacific	$10.50 billion	2.77	$553.95 million	N/A	N/A

Sumitomo has higher revenue and earnings than Swire Pacific.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Sumitomo and Swire Pacific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo	0	0	0	2	4.00
Swire Pacific	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sumitomo	8.34%	12.31%	5.19%
Swire Pacific	N/A	N/A	N/A

Dividends

Sumitomo pays an annual dividend of $0.68 per share and has a dividend yield of 2.0%. Swire Pacific pays an annual dividend of $0.29 per share and has a dividend yield of 3.6%. Sumitomo pays out 20.1% of its earnings in the form of a dividend.

Summary

Sumitomo beats Swire Pacific on 8 of the 11 factors compared between the two stocks.

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.

About Swire Pacific

Swire Pacific Limited engages in property, aviation, beverages, marine, and trading and industrial businesses in Hong Kong, Mainland China, rest of Asia, the United States, and internationally. The company's Property division develops, owns, and operates mixed-use properties. This division's property investment portfolio comprises office and retail premises, serviced apartments, and other luxury residential accommodations; and trading portfolio consists of residential properties. It also owns and manages hotels in Hong Kong and hotels in Mainland China, as well as owns interests in the Mandarin Oriental hotel in the United States. The company's Aviation division provides flight catering and ramp, passenger and cargo services, and aircraft maintenance and modification services. As of December 31, 2022, it had a fleet of 222 aircraft. Its Beverages division owns rights to manufacture, market, and distribute beverages to consumers. The company's Trading & Industrial division markets, retails, and distributes footwear, apparel, and accessories through its retail outlets; sells passenger cars, commercial vehicles, motorcycles, and scooters; operates a chain of bakery stores; packages and sells sugar products under the Taikoo Sugar brand; and offers waste management, business consultancy, and financial services. The company was founded in 1816 and is based in Central, Hong Kong. Swire Pacific Limited operates as a subsidiary of John Swire & Sons (H.K.) Limited