Analyzing Hubbell (HUBB) and Minebea Mitsumi (MNBEY)

Hubbell (NYSE:HUBB) and Minebea Mitsumi (OTCMKTS:MNBEY) are both mid-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Institutional and Insider Ownership

87.5% of Hubbell shares are held by institutional investors. 0.7% of Hubbell shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Hubbell has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Minebea Mitsumi has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Profitability

This table compares Hubbell and Minebea Mitsumi’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hubbell 6.88% 23.08% 8.41%
Minebea Mitsumi 6.21% 17.06% 8.57%

Dividends

Hubbell pays an annual dividend of $3.08 per share and has a dividend yield of 2.9%. Minebea Mitsumi pays an annual dividend of $0.18 per share and has a dividend yield of 0.6%. Hubbell pays out 51.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Hubbell and Minebea Mitsumi’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hubbell $3.67 billion 1.59 $243.10 million $5.93 17.98
Minebea Mitsumi $7.94 billion 0.82 $536.22 million N/A N/A

Minebea Mitsumi has higher revenue and earnings than Hubbell.

Analyst Recommendations

This is a summary of current recommendations for Hubbell and Minebea Mitsumi, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hubbell 0 0 6 0 3.00
Minebea Mitsumi 0 0 0 0 N/A

Hubbell currently has a consensus price target of $136.00, indicating a potential upside of 27.56%. Given Hubbell’s higher possible upside, analysts plainly believe Hubbell is more favorable than Minebea Mitsumi.

Summary

Hubbell beats Minebea Mitsumi on 9 of the 14 factors compared between the two stocks.

About Hubbell

Hubbell Incorporated designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical and Power. The Electrical segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market. It also designs and manufactures various high voltage test and measurement equipment, industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product oriented Internet sites; special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers; and high voltage products directly to its customers through sales engineers. The Power segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products. This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, pipeline and mining operations, industrial firms, construction and engineering firms, and civil construction and transportation industries. Hubbell Incorporated was founded in 1888 and is headquartered in Shelton, Connecticut.

About Minebea Mitsumi

MinebeaMitsumi Inc. manufactures and supplies machined components, and electronic devices and components in China, Japan, Thailand, Europe, the United States, and internationally. It operates through three segments: Machined Components, Electronic Devices and Components, and MITSUMI business. The Machined Components segment provides bearing products, including miniature and small-sized ball bearings, rod-end and spherical bearings, roller bearings, bushings, and precision machined parts. This segment also offers bearing-related products comprising pivot assemblies and precision mechanical assemblies; and fasteners, defense related special components, and magnetic clutches and brakes. The Electronic Devices and Components segment provides rotary components, such as fan motors, blowers, hybrid type stepping motors, small diameter/PM stepping motors, brush DC motors, small brushless motors, power brushless motors, polygon mirror scanner motors, HDD spindle motors, high-pressure blowers, rotation angle sensors, and fan units; and back light inverters and LED drivers, as well as lighting devices for LCDs. This segment also offers measuring components consisting of strain gages, force sensors, load cells, pressure sensors, torque transducers, vector sensors, digital indicators, and tensile and compression testing machines. The MITSUMI business segment makes camera actuators for smartphones, mechanical parts, connectors, switches, power supply components, antennas, tuners and semi-conductor devices. It serves customers in IT, telecommunications, aerospace, automotive, home appliance, and other industries. The company was formerly known as Minebea Co., Ltd. and changed its name to MinebeaMitsumi Inc. in January 2017. MinebeaMitsumi Inc. was founded in 1951 and is headquartered in Tokyo, Japan.

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