Analyzing Sompo (SMPNY) and Its Rivals

Sompo (OTCMKTS:SMPNY) is one of 311 public companies in the “Insurance” industry, but how does it contrast to its rivals? We will compare Sompo to similar businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sompo	12.35%	13.62%	3.96%
Sompo Competitors	9.45%	-10.05%	4.09%

Dividends

Sompo pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Sompo pays out 11.0% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 31.2% of their earnings in the form of a dividend.

Volatility and Risk

Sompo has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Sompo’s rivals have a beta of -1.55, suggesting that their average stock price is 255% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Sompo	$35.69 billion	$4.22 billion	9.00
Sompo Competitors	$15.33 billion	$1.70 billion	33.70

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

Institutional and Insider Ownership

55.9% of shares of all “Insurance” companies are held by institutional investors. 13.4% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sompo and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sompo	0	1	0	0	2.00
Sompo Competitors	3349	15720	16568	747	2.40

As a group, “Insurance” companies have a potential upside of 4.28%. Given Sompo’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Sompo has less favorable growth aspects than its rivals.

Summary

Sompo rivals beat Sompo on 9 of the 15 factors compared.

Sompo Company Profile

Sompo Holdings, Inc. is a Japan-based insurance and financial services group. Its main businesses include property and casualty insurance, life insurance, and nursing care services, serving individuals, businesses, and institutional customers. The group’s insurance operations include Sompo Japan Insurance, which offers coverage such as automobile, fire, and other commercial and personal insurance, and Sompo Himawari Life Insurance, which provides life and health-related products. Sompo also operates nursing care and senior-care services through Sompo Care.