Contrasting Sompo (OTCMKTS:SMPNY) and M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY)

M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY) and Sompo (OTCMKTS:SMPNY) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for M�nchener R�ckversicherungs-Gesellschaft and Sompo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M�nchener R�ckversicherungs-Gesellschaft	0	2	1	1	2.75
Sompo	0	0	0	0	0.00

Institutional and Insider Ownership

0.2% of M�nchener R�ckversicherungs-Gesellschaft shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares M�nchener R�ckversicherungs-Gesellschaft and Sompo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M�nchener R�ckversicherungs-Gesellschaft	$65.83 billion	1.20	$6.15 billion	$1.76	6.94
Sompo	$35.81 billion	0.91	$2.79 billion	$1.89	9.20

M�nchener R�ckversicherungs-Gesellschaft has higher revenue and earnings than Sompo. M�nchener R�ckversicherungs-Gesellschaft is trading at a lower price-to-earnings ratio than Sompo, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

M�nchener R�ckversicherungs-Gesellschaft has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Sompo has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Dividends

M�nchener R�ckversicherungs-Gesellschaft pays an annual dividend of $0.26 per share and has a dividend yield of 2.1%. Sompo pays an annual dividend of $0.28 per share and has a dividend yield of 1.6%. M�nchener R�ckversicherungs-Gesellschaft pays out 14.8% of its earnings in the form of a dividend. Sompo pays out 14.8% 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. M�nchener R�ckversicherungs-Gesellschaft is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares M�nchener R�ckversicherungs-Gesellschaft and Sompo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M�nchener R�ckversicherungs-Gesellschaft	10.34%	19.63%	2.22%
Sompo	10.20%	14.10%	3.41%

Summary

M�nchener R�ckversicherungs-Gesellschaft beats Sompo on 12 of the 15 factors compared between the two stocks.

About M�nchener R�ckversicherungs-Gesellschaft

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. It also offers life and health reinsurance solutions, such as digital underwriting and advanced analytics solutions, health insurance management system, financial market risks, financing, portfolio risk management, digitalized investment-linked solution, MIRA digital suite, MIRA POS, MIRApply insured and physician, claims risk adjustment, CLARA plus, data analytics, underwriting and claims, medical research, capital management, and health market. The company also provides property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, property insurance, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, and cert2go, as well as consulting services for reinsurance, business advisory, portfolio performance and management, claims management, commercial motor, telematics, and electric vehicles. In addition, the company provides solutions for industry clients, such as IoT cover, earnings quality insurance protection, captive insurance and risk transfer, liability, weather risks, space and satellite insurance, solar and biomass insurance, wind insurance, digital asset, mining risks cover, construction projects covers and services, aviation insurance, power and utilities, industrial cyber insurance, risk suite, location risk intelligence, digital risks, PV warranty insurance, parametric, Insure AI, e-mobility, circular economy, liquidation damage cover, and natural catastrophes solutions. Further, it offers life, property-casualty, health, legal protection, and travel insurance products under the ERGO brand name; and insurance solutions for agriculture, captive, epidemic, cyber, and renewable energy. The company was founded in 1880 and is based in Munich, Germany.

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.