CompetitorsNarrow moat

Sumitomo Corporation (8053) — moat facet

Sumitomo is the cheapest of Japan's five large trading houses because the market still remembers its losses.

Sumitomo competes with the other large Japanese trading houses for acquisitions, partners and people, and with specialists in each of its businesses. Among the five houses Berkshire Hathaway invested in, it is the cheapest on trailing earnings: 13.90 times, against 14.19 for Marubeni, 15.75 for Mitsui, 17.77 for ITOCHU and 20.12 for Mitsubishi12345. By market value it is about ¥8.5 trillion6, level with Marubeni's ¥8.09 trillion and about half the size of the largest three78910.

Trailing price-to-earnings, September 2026 (times)Mitsubishi Corp.20.12ITOCHU17.77Mitsui & Co.15.75Marubeni14.19Sumitomo Corp.13.90stockanalysis, September 2026
The cheapest of the five.

The discount reflects the company's record. Its history includes a loss of ¥153.1 billion in the year to March 202111, and its return on equity was 9.4% as recently as the year to March 202412. The market is pricing a portfolio that is still being repaired.

Outside the trading houses, its competitors are specialists. In aircraft leasing the largest is AerCap, ahead of Sumitomo's combined SMBC Aviation Capital and Sumisho Air Lease13. In IT services, SCSK competes with Japan's other systems integrators. In power, it competes with utilities and other developers for contracts.

Some of the specialists are also partners. Sumitomo bought Air Lease with SMBC Aviation Capital, Apollo and Brookfield14, investors who compete with it for aviation assets elsewhere.

The trading houses also compete for the same investors. All five are now more than 10% owned by Berkshire Hathaway15, which describes its holdings as very long term16. For other investors choosing among them, Sumitomo's lower multiple is the main argument; its record is the main counter-argument.

The measure is Sumitomo's price-to-earnings ratio against its peers. Narrowing the gap to Marubeni and Mitsui would show the market accepting that the losses are behind it.

Moat trajectory: Holding steady

The valuation gap is unchanged; returns have improved.

The number that tests this moat
Reported
Trailing P/E against the four other houses
13.90 against 14.19-20.12

The market's discount on Sumitomo; narrowing would show confidence in the rebuilt portfolio.

Source: Sumitomo Corporation market data (stockanalysis) ↗
Dig deeper
DIG DEEPER 01
Mitsubishi, Mitsui and ITOCHU: The Houses Worth Nearly Twice as Much
Sumitomo earns two-thirds as much as the big three trading houses and is valued at little more than half.
DIG DEEPER 02
Marubeni: The Rival of the Same Size
Sumitomo and Marubeni are almost the same size, and Sumitomo trades at a slightly lower multiple.
DIG DEEPER 03
AerCap: The Only Larger Lessor
In aircraft leasing Sumitomo is second, and the leader owes it nothing.
DIG DEEPER 04
Apollo and Brookfield: Rivals Turned Co-Owners
Sumitomo bought its latest aircraft lessor with the investment firms it usually bids against.
References
  1. ReportedAmong the five houses Berkshire Hathaway invested in, it is the cheapest on trailing earnings: 13.90 times, against 14.19 for Marubeni, 15.75 for Mitsui, 17.77 for ITOCHU and 20.12 for Mitsubishi.
    Sumitomo Corporation (TYO: 8053) market data - share price ¥1,768.50, market capitalisation 8.51T yen, trailing net income 619.05B yen, P/E 13.90, forward P/E 12.62, dividend ¥40.00 (2.26%), September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  2. ReportedAmong the five houses Berkshire Hathaway invested in, it is the cheapest on trailing earnings: 13.90 times, against 14.19 for Marubeni, 15.75 for Mitsui, 17.77 for ITOCHU and 20.12 for Mitsubishi.
    Marubeni Corporation (TYO: 8002) market data - market capitalisation 8.09T yen, trailing net income 575.88B yen, P/E 14.19, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  3. ReportedAmong the five houses Berkshire Hathaway invested in, it is the cheapest on trailing earnings: 13.90 times, against 14.19 for Marubeni, 15.75 for Mitsui, 17.77 for ITOCHU and 20.12 for Mitsubishi.
    Mitsui & Co. (TYO: 8031) market data - market capitalisation 14.63T yen, trailing net income 936.38B yen, P/E 15.75, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  4. ReportedAmong the five houses Berkshire Hathaway invested in, it is the cheapest on trailing earnings: 13.90 times, against 14.19 for Marubeni, 15.75 for Mitsui, 17.77 for ITOCHU and 20.12 for Mitsubishi.
    ITOCHU Corporation (TYO: 8001) market data - market capitalisation 15.94T yen, trailing net income 910.11B yen, P/E 17.77, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  5. ReportedAmong the five houses Berkshire Hathaway invested in, it is the cheapest on trailing earnings: 13.90 times, against 14.19 for Marubeni, 15.75 for Mitsui, 17.77 for ITOCHU and 20.12 for Mitsubishi.
    Mitsubishi Corporation (TYO: 8058) market data - market capitalisation 17.62T yen, trailing net income 895.86B yen, P/E 20.12, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  6. ReportedBy market value it is about ¥8.5 trillion, level with Marubeni's ¥8.09 trillion and about half the size of the largest three.
    Sumitomo Corporation (TYO: 8053) market data - share price ¥1,768.50, market capitalisation 8.51T yen, trailing net income 619.05B yen, P/E 13.90, forward P/E 12.62, dividend ¥40.00 (2.26%), September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  7. ReportedBy market value it is about ¥8.5 trillion, level with Marubeni's ¥8.09 trillion and about half the size of the largest three.
    Marubeni Corporation (TYO: 8002) market data - market capitalisation 8.09T yen, trailing net income 575.88B yen, P/E 14.19, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  8. ReportedBy market value it is about ¥8.5 trillion, level with Marubeni's ¥8.09 trillion and about half the size of the largest three.
    Mitsubishi Corporation (TYO: 8058) market data - market capitalisation 17.62T yen, trailing net income 895.86B yen, P/E 20.12, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  9. ReportedBy market value it is about ¥8.5 trillion, level with Marubeni's ¥8.09 trillion and about half the size of the largest three.
    Mitsui & Co. (TYO: 8031) market data - market capitalisation 14.63T yen, trailing net income 936.38B yen, P/E 15.75, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  10. ReportedBy market value it is about ¥8.5 trillion, level with Marubeni's ¥8.09 trillion and about half the size of the largest three.
    ITOCHU Corporation (TYO: 8001) market data - market capitalisation 15.94T yen, trailing net income 910.11B yen, P/E 17.77, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  11. ReportedIts history includes a loss of ¥153.1 billion in the year to March 2021, and its return on equity was 9.4% as recently as the year to March 2024.
    Sumitomo Corporation, Financial Data workbook for the year to March 2026 - historical revenue, profit, EPS, ROE, balance sheet, cash flows and share prices from the year to March 2014, and the risk buffer against risk assets. — FY to March 2014-2026 · publ. May 2026 · source ↗
  12. ReportedIts history includes a loss of ¥153.1 billion in the year to March 2021, and its return on equity was 9.4% as recently as the year to March 2024.
    Sumitomo Corporation, Financial Data workbook for the year to March 2026 - historical revenue, profit, EPS, ROE, balance sheet, cash flows and share prices from the year to March 2014, and the risk buffer against risk assets. — FY to March 2014-2026 · publ. May 2026 · source ↗
  13. ReportedIn aircraft leasing the largest is AerCap, ahead of Sumitomo's combined SMBC Aviation Capital and Sumisho Air Lease.
    Sumitomo Corporation, results presentation for the year to March 2026 - leasing and aviation: SMFL, SMBC Aviation Capital, the lessor rankings, Air Lease and the automotive businesses. — FY to March 2026 · publ. May 2026 · source ↗
  14. ReportedSumitomo bought Air Lease with SMBC Aviation Capital, Apollo and Brookfield, investors who compete with it for aviation assets elsewhere.
    Apollo press release, September 2025 - Sumitomo Corporation, SMBC Aviation Capital, Apollo and Brookfield to acquire Air Lease for $65.00 a share, about $7.4 billion of equity and $28.2 billion including debt. — September 2025 · publ. September 2025 · source ↗
  15. ReportedAll five are now more than 10% owned by Berkshire Hathaway, which describes its holdings as very long term.
    Hedge Fund Alpha - Berkshire Hathaway raised its Sumitomo stake from 9.30% to 10.05%, 119.8 million shares, and now owns more than 10% of all five trading houses. — May 2026 · publ. May 2026 · source ↗
  16. ReportedAll five are now more than 10% owned by Berkshire Hathaway, which describes its holdings as very long term.
    Berkshire Hathaway 2024 shareholder letter - first purchases in July 2019, the 10% ceiling moderately relaxed, holdings for the very long term. — 2024 · publ. February 2025 · source ↗
Sources
Generated September 24, 2026