Financial Analysis: Sompo (SMPNY) versus Its Rivals

Profitability

This table compares Sompo and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sompo	7.77%	14.57%	2.88%
Sompo Competitors	10.27%	8.71%	2.85%

Volatility & Risk

Sompo has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Sompo’s competitors have a beta of -6.73, meaning that their average share price is 773% less volatile than the S&P 500.

Insider & Institutional Ownership

63.6% of shares of all “INS – MULTI LINE” companies are held by institutional investors. 8.9% of shares of all “INS – MULTI LINE” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Sompo pays an annual dividend of $0.38 per share and has a dividend yield of 2.6%. Sompo pays out 26.4% of its earnings in the form of a dividend. As a group, “INS – MULTI LINE” companies pay a dividend yield of 2.5% and pay out 38.3% of their earnings in the form of a dividend. Sompo is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Sompo and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sompo	$35.81 billion	$2.79 billion	9.97
Sompo Competitors	$20.68 billion	$1.60 billion	82.30

Sompo has higher revenue and earnings than its competitors. Sompo is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Sompo beats its competitors on 7 of the 11 factors compared.

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.