Smithfield Foods (NASDAQ:SFD) vs. Mitsubishi Chemical Group (OTCMKTS:MTLHY) Critical Analysis

Mitsubishi Chemical Group (OTCMKTS:MTLHY) and Smithfield Foods (NASDAQ:SFD) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Mitsubishi Chemical Group and Smithfield Foods”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi Chemical Group	$30.39 billion	0.24	$825.21 million	$1.72	15.10
Smithfield Foods	$14.19 billion	0.56	N/A	N/A	N/A

Mitsubishi Chemical Group has higher revenue and earnings than Smithfield Foods.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mitsubishi Chemical Group and Smithfield Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Chemical Group	0	0	0	0	0.00
Smithfield Foods	0	1	6	0	2.86

Smithfield Foods has a consensus target price of $27.67, indicating a potential upside of 35.89%. Given Smithfield Foods’ stronger consensus rating and higher possible upside, analysts clearly believe Smithfield Foods is more favorable than Mitsubishi Chemical Group.

Profitability

This table compares Mitsubishi Chemical Group and Smithfield Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Chemical Group	1.66%	3.18%	1.20%
Smithfield Foods	N/A	N/A	N/A

About Mitsubishi Chemical Group

Mitsubishi Chemical Group Corporation provides performance products, chemicals, industrial gases, health care products, and other products in Japan and internationally. It operates in five segments: Specialty Materials, Industrial Gases, Health Care, MMA, and Basic Materials. The Specialty Materials segment offers performance polymers, soarnol, gohsenol, sustainable polymers, and engineering plastics; coating materials, additives, and fines; packaging, industrial and medical, acetyl, and polyester films; engineering shapes and solutions, carbon fiber and composite materials, and fibers; aqua, life, and infrastructure solutions; and semiconductor, electronics, and battery materials. The Industrial Gases segment provides industrial gases. The Health Care segment offers ethical pharmaceuticals. The MMA segment provides methyl methacrylate (MMA) and polymethyl methacrylate (PMMA). The Basic Materials segment offers basic petrochemicals, polyolefins, and basic chemical derivatives, as well as carbon products. The company provides engineering, transportation, and warehousing services. Mitsubishi Chemical Group Corporation was incorporated in 2005 and is headquartered in Tokyo, Japan.

About Smithfield Foods

Smithfield Foods, Inc. produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. The Company operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments. The Pork segment consists mainly of its three wholly owned United States fresh pork and packaged meats subsidiaries: The Smithfield Packing Company, Inc. (Smithfield Packing), Farmland Foods, Inc. (Farmland Foods) and John Morrell Food Group (John Morrell). The Hog Production segment consists of the Company’s hog production operations located in the United States. On September 2012 (fiscal 2013), the Company acquired a 70% controlling interest in American Skin Food Group, LLC. Effective September 26, 2013, Shuanghui International Holdings Ltd merged with Smithfield Foods Inc, a producer and wholesaler of pork meat products.