China Life Insurance Company Limited (NYSE: LFC) and Genworth Financial (NYSE:GNW) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Risk and Volatility

China Life Insurance Company Limited has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Genworth Financial has a beta of 2.7, indicating that its share price is 170% more volatile than the S&P 500.

Insider and Institutional Ownership

0.2% of China Life Insurance Company Limited shares are held by institutional investors. Comparatively, 67.6% of Genworth Financial shares are held by institutional investors. 0.3% of Genworth Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

China Life Insurance Company Limited pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Genworth Financial does not pay a dividend. China Life Insurance Company Limited pays out 26.4% of its earnings in the form of a dividend. China Life Insurance Company Limited has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares China Life Insurance Company Limited and Genworth Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Life Insurance Company Limited $92.94 billion 0.24 $5.79 billion $0.53 28.45
Genworth Financial $8.74 billion 0.19 $852.00 million ($0.30) -11.23

China Life Insurance Company Limited has higher revenue and earnings than Genworth Financial. Genworth Financial is trading at a lower price-to-earnings ratio than China Life Insurance Company Limited, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for China Life Insurance Company Limited and Genworth Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Life Insurance Company Limited 0 3 3 0 2.50
Genworth Financial 0 2 2 0 2.50

Genworth Financial has a consensus target price of $4.55, suggesting a potential upside of 34.87%. Given Genworth Financial’s higher probable upside, analysts clearly believe Genworth Financial is more favorable than China Life Insurance Company Limited.

Profitability

This table compares China Life Insurance Company Limited and Genworth Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Life Insurance Company Limited 3.52% 6.67% 0.75%
Genworth Financial -1.66% -1.63% -0.23%

Summary

China Life Insurance Company Limited beats Genworth Financial on 10 of the 15 factors compared between the two stocks.

China Life Insurance Company Limited Company Profile

China Life Insurance Company Limited is a life insurance company. The Company provides a range of insurance products, including individual and group life insurance, health insurance and accident insurance products. It operates through three segments: Life Insurance, Health Insurance, and Accident Insurance. Its Life Insurance segment provides participating and non-participating life insurance and annuities to individuals and groups. Its Health Insurance segment provides short-term and long-term health insurance to individuals and groups. Its Accident Insurance segment provides short-term and long-term accident insurance to individuals and groups.

Genworth Financial Company Profile

Genworth Financial, Inc. (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.

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