Suncorp Group (OTCMKTS:SNMYF) and Sompo (OTCMKTS:SMPNY) Financial Review

Suncorp Group (OTCMKTS:SNMYF) and Sompo (OTCMKTS:SMPNY) are both financial services companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Suncorp Group and Sompo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suncorp Group	0	0	0	0	N/A
Sompo	0	0	0	0	N/A

Profitability

This table compares Suncorp Group and Sompo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suncorp Group	N/A	N/A	N/A
Sompo	2.00%	4.49%	0.62%

Institutional and Insider Ownership

30.6% of Suncorp Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Suncorp Group and Sompo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suncorp Group	N/A	N/A	N/A	$0.57	14.53
Sompo	$34.10 billion	0.45	$674.74 million	$1.00	22.11

Sompo has higher revenue and earnings than Suncorp Group. Suncorp Group is trading at a lower price-to-earnings ratio than Sompo, indicating that it is currently the more affordable of the two stocks.

Dividends

Suncorp Group pays an annual dividend of $0.65 per share and has a dividend yield of 7.8%. Sompo pays an annual dividend of $0.66 per share and has a dividend yield of 3.0%. Suncorp Group pays out 113.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sompo pays out 66.0% of its earnings in the form of a dividend.

Summary

Sompo beats Suncorp Group on 7 of the 9 factors compared between the two stocks.

About Suncorp Group

Suncorp Group Limited provides insurance and banking products and services to retail, corporate, and commercial customers in Australia and New Zealand. The company operates through Insurance (Australia), Suncorp Bank, and Suncorp New Zealand segments. The Insurance (Australia) segment provides general insurance products and services, including home and contents, motor, marine, travel, commercial property, industrial special risk, public liability and professional indemnity, workers' compensation, and compulsory third-party products, as well as distributes life insurance products. The Suncorp Bank segment offers banking services, such as commercial, agribusiness, small business, and home loans; savings and transaction accounts; foreign exchange services; and treasury products and services. The Suncorp New Zealand segment provides general and life insurance products comprising home and contents, motor, commercial property, public liability and professional indemnity, life, trauma, total and permanent disablement, and income protection. The company was formerly known as Suncorp-Metway Limited and changed its name to Suncorp Group Limited in December 2010. The company was founded in 1902 and is headquartered in Brisbane, Australia.

About Sompo

Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care & Seniors Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and seniors services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; and health support services comprising health guidance and employee assistance programs. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.