Analyzing Kansas City Life Insurance (OTCMKTS:KCLI) and Power Co. of Canada (OTCMKTS:PWCDF)

Kansas City Life Insurance (OTCMKTS:KCLI) and Power Co. of Canada (OTCMKTS:PWCDF) are both financial services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Profitability

This table compares Kansas City Life Insurance and Power Co. of Canada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kansas City Life Insurance	-2.40%	-2.33%	-0.24%
Power Co. of Canada	N/A	N/A	N/A

Insider & Institutional Ownership

0.0% of Kansas City Life Insurance shares are owned by institutional investors. Comparatively, 41.7% of Power Co. of Canada shares are owned by institutional investors. 63.1% of Kansas City Life Insurance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Kansas City Life Insurance pays an annual dividend of $0.56 per share and has a dividend yield of 2.2%. Power Co. of Canada pays an annual dividend of $1.16 per share and has a dividend yield of 4.2%. Kansas City Life Insurance pays out -46.3% of its earnings in the form of a dividend. Power Co. of Canada pays out 42.6% 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.

Valuation and Earnings

This table compares Kansas City Life Insurance and Power Co. of Canada’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kansas City Life Insurance	$476.64 million	0.51	-$16.22 million	($1.21)	-20.77
Power Co. of Canada	N/A	N/A	N/A	$2.72	10.08

Power Co. of Canada has lower revenue, but higher earnings than Kansas City Life Insurance. Kansas City Life Insurance is trading at a lower price-to-earnings ratio than Power Co. of Canada, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Kansas City Life Insurance and Power Co. of Canada, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kansas City Life Insurance	0	0	0	0	N/A
Power Co. of Canada	0	1	0	0	2.00

Power Co. of Canada has a consensus price target of $40.06, suggesting a potential upside of 46.00%. Given Power Co. of Canada’s higher probable upside, analysts plainly believe Power Co. of Canada is more favorable than Kansas City Life Insurance.

Summary

Power Co. of Canada beats Kansas City Life Insurance on 8 of the 11 factors compared between the two stocks.

About Kansas City Life Insurance

Kansas City Life Insurance Company provides insurance products and services in states and the District of Columbia. It offers a portfolio of individual insurance, annuity, and group life and health insurance; and traditional life insurance, immediate annuities with life contingencies, supplementary contracts with life contingencies, and accident and health insurance. The company was incorporated in 1895 and is based in Kansas City, Missouri.

About Power Co. of Canada

Power Corporation of Canada, an international management and holding company, offers financial services in North America, Europe, and Asia. It operates through Lifeco, IGM Financial, and GBL segments. The company offers life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance; retirement and investment management; fund and asset management; reinsurance and retrocession; investment advisory, financial planning, and related services; fund products; and protection and wealth management services. It also provides employer-sponsored retirement plan, individual retirement account and drawdown, investment option, and education services, as well as taxable brokerage accounts; private keeping and administrative services; payout annuities, equity release mortgages, life bonds, mortgage, securities, pension, private equity, and financial services; and investment products, such as equity, fixed income, absolute return and alternative strategies, exchange traded funds, and trust funds. The company was incorporated in 1925 and is based in Montreal, Canada. Power Corporation of Canada operates as a subsidiary of Pansolo Holding Inc.