China Shenhua Energy (OTCMKTS:CSUAY – Get Free Report) and Secom (OTCMKTS:SOMLY – Get Free Report) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Valuation & Earnings
This table compares China Shenhua Energy and Secom’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Shenhua Energy | $48.54 billion | N/A | $9.14 billion | $1.73 | 11.01 |
| Secom | $8.00 billion | 1.73 | $706.22 million | $0.84 | 17.68 |
China Shenhua Energy has higher revenue and earnings than Secom. China Shenhua Energy is trading at a lower price-to-earnings ratio than Secom, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Shenhua Energy | 0 | 0 | 1 | 0 | 3.00 |
| Secom | 0 | 0 | 0 | 0 | N/A |
Risk and Volatility
China Shenhua Energy has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Secom has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.
Dividends
China Shenhua Energy pays an annual dividend of $1.29 per share and has a dividend yield of 6.8%. Secom pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. China Shenhua Energy pays out 74.6% of its earnings in the form of a dividend. Secom pays out 11.9% 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 China Shenhua Energy and Secom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Shenhua Energy | 17.97% | 13.20% | 9.96% |
| Secom | 8.85% | 7.55% | 5.08% |
Summary
China Shenhua Energy beats Secom on 8 of the 11 factors compared between the two stocks.
About China Shenhua Energy
China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power Generation, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants and metallurgical and coal chemical producers. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of China Energy Investment Corporation Limited.
About Secom
SECOM CO., LTD., together with its subsidiaries, provides security services in Japan and internationally. The company operates through Security Services, Fire Protection Services, Medical Services, Insurance Services, Geospatial Information Services, BPO and ICT Services, and Other Services. The Security Services segment offers static guard, armored car, merchandise, and other services, as well as online security systems. The Fire Protection Services segment provides fire alarm systems, fire extinguishing systems, and maintenance services to office buildings, production facilities, tunnels, cultural properties, ships, and residences. The Medical Services segment offers home nursing, pharmaceutical dispensing, home delivery services, health and preventative care services, and personal and outpatient care services; and cloud-based medical reporting services and SECOM LINKus application. This segment also operates the general hospital and residences for seniors; and sells medical equipment and pharmaceuticals. The Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The Geospatial Information Services segment offers geospatial information services to public-sector entities, such as national and local governments; private sector customers; and overseas government agencies. The BPO and ICT Services segment provides contact centers and back office support services, data center, disaster preparedness, information security, and cloud-based services, as well as SaaS solutions. The Other Services segment offers real estate leasing, construction, and installation services. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.
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