Analyzing Sompo (OTCMKTS:SMPNY) and Legal & General Group (OTCMKTS:LGGNY)

Legal & General Group (OTCMKTS:LGGNY) and Sompo (OTCMKTS:SMPNY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Earnings and Valuation

This table compares Legal & General Group and Sompo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legal & General Group	$13.51 billion	1.32	$244.08 million	N/A	N/A
Sompo	$35.81 billion	0.79	$2.79 billion	$1.49	10.15

Sompo has higher revenue and earnings than Legal & General Group.

Risk and Volatility

Legal & General Group has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Sompo has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Dividends

Legal & General Group pays an annual dividend of $0.77 per share and has a dividend yield of 4.9%. Sompo pays an annual dividend of $0.38 per share and has a dividend yield of 2.5%. Sompo pays out 25.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for Legal & General Group and Sompo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legal & General Group	2	3	0	0	1.60
Sompo	0	0	0	0	0.00

Institutional and Insider Ownership

0.0% of Legal & General Group shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Legal & General Group	N/A	N/A	N/A
Sompo	8.14%	13.04%	2.83%

Summary

Legal & General Group beats Sompo on 6 of the 11 factors compared between the two stocks.

About Legal & General Group

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in Legal & General Retirement Institutional (LGRI), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Retail segments. The LGRI segment offers annuity contracts with guaranteed income for a specified time; and longevity insurance products. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets. The LGC segment provides investment strategy and implementation, and direct investment and structuring services. The Retail segment offers protection products, such as health, disability, critical illness, and accident; individual term assurance; reinsurance; savings and death benefits; annuities; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace savings scheme that provides corporate pension scheme solutions. It is also involved in the unit trust and institutional fund management, mortgage finance, treasury, building project and modular housing development, general insurance, and open-ended investment businesses. In addition, the company engages in the investment, operation, management, trading, and letting and operation of leased real estate; and construction of commercial buildings, financial intermediation, pension tracing and transfer, insurance agents and brokers, fund general partner, commercial lending, venture capital investing, contractual scheme, investor alternative investment fund, collective asset-management, and investment management activities; and provision of investment advisory, business information consultancy, and technology services. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.

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.