Critical Analysis: Adams Resources & Energy (NYSE:AE) and Mitsui & Co Ltd (NYSE:MITSY)

Adams Resources & Energy (NYSE:AE) and Mitsui & Co Ltd (OTCMKTS:MITSY) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Adams Resources & Energy and Mitsui & Co Ltd, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adams Resources & Energy 0 0 0 0 N/A
Mitsui & Co Ltd 0 0 1 0 3.00

Dividends

Adams Resources & Energy pays an annual dividend of $0.96 per share and has a dividend yield of 4.7%. Mitsui & Co Ltd pays an annual dividend of $6.33 per share and has a dividend yield of 1.8%. Mitsui & Co Ltd pays out 15.2% of its earnings in the form of a dividend. Adams Resources & Energy has increased its dividend for 1 consecutive years. Adams Resources & Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Adams Resources & Energy and Mitsui & Co Ltd’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adams Resources & Energy $1.81 billion 0.05 $8.21 million N/A N/A
Mitsui & Co Ltd $63.22 billion 0.47 $3.60 billion $41.53 8.27

Mitsui & Co Ltd has higher revenue and earnings than Adams Resources & Energy.

Profitability

This table compares Adams Resources & Energy and Mitsui & Co Ltd’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adams Resources & Energy -0.33% 6.23% 3.13%
Mitsui & Co Ltd 4.92% 7.72% 2.79%

Volatility and Risk

Adams Resources & Energy has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Mitsui & Co Ltd has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Institutional & Insider Ownership

38.5% of Adams Resources & Energy shares are held by institutional investors. Comparatively, 0.1% of Mitsui & Co Ltd shares are held by institutional investors. 0.3% of Adams Resources & Energy shares are held by company insiders. Comparatively, 0.0% of Mitsui & Co Ltd shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

About Adams Resources & Energy

Adams Resources & Energy, Inc., through its subsidiaries, primarily engages in the marketing, transportation, and storage of crude oil in the United States. The company operates in two segments, Crude Oil Marketing, Transportation and Storage; and Tank Truck Transportation of Liquid Chemicals and Dry Bulk. The Crude Oil Marketing, Transportation and Storage segment purchases crude oil, and arranges sales and deliveries to refiners and other customers primarily onshore in Texas, Oklahoma, North Dakota, Michigan, and Louisiana. This segment owns and operates a fleet of 256 tractor-trailer rigs and maintains approximately 179 pipeline inventory locations or injection stations. The Tank Truck Transportation of Liquid Chemicals and Dry Bulk segment transports liquid chemicals and dry bulk on a for hire basis in the continental United States and into Canada and Mexico. It operates truck terminals in Houston, Corpus Christi, Nederland, and Freeport, Texas; Baton Rouge, St. Rose, and Boutte, Louisiana; Mobile, Alabama; and Charlotte, North Carolina. Adams Resources & Energy, Inc. was founded in 1947 and is headquartered in Houston, Texas.

About Mitsui & Co Ltd

Mitsui & Co., Ltd. operates as a general trading company worldwide. It engages in the export, import, wholesale, and retail of steel products; steel processing; mining and sale of iron ores; and sale and trading of non-ferrous scrap, alloys, and products. The company also invests in copper, nickel, coal, power generation, cobalt smelting, gas distribution, LNG terminal, deepwater drilling, cogeneration, truck leasing, shipping, passenger transport, methanol, crop protection, phosphorus ore, natural gas liquefaction, processed oil food, property management, healthcare staffing, mobile services, venture, cyber security, and private equity businesses. It also sells plants, electric power facility, transportation, construction, mining, and peripheral equipment, as well as machine tools and plastics; designs, builds, and operates wastewater treatment plants, and container and air cargo terminals; and imports and sells automobile and auto parts, helicopter, defense, and aerospace products. In addition, the company finances automobile and motorcycle; provides auto parts logistics services; leases and manages freightcar and locomotives; operates chemical tankers; produces salt; and sells solvents and coating materials, petroleum and crude oil, agricultural, marine, energy and base metal, canned and chilled foods, juice ingredient, coffee beans and roasted coffee, food and beverages, packaging materials, groceries, apparel and clothing, electronic devices and equipment, and oil and gas well tubular products. Further, it processes and sells woodchips; manufactures and sells industrial chemicals, fertilizers, saccharified, pharmaceuticals, feedstuff, and information and communication equipment; explores, develops, and produces oil and natural gas; and offers non life and life insurance agency, warehousing, grain merchandising, real estate asset management, water supply, and financing services. The company was founded in 1947 and is headquartered in Tokyo, Japan.

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