Reviewing Allianz (OTCMKTS:ALIZY) & Sompo (OTCMKTS:SMPNY)

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

Dividends

Allianz pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. Sompo pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Allianz pays out 39.4% of its earnings in the form of a dividend. Sompo pays out 11.0% 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.

Profitability

This table compares Allianz and Sompo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allianz	6.31%	18.33%	1.16%
Sompo	12.35%	13.62%	3.96%

Analyst Recommendations

This is a breakdown of current recommendations for Allianz and Sompo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allianz	0	2	2	1	2.80
Sompo	0	1	0	0	2.00

Institutional and Insider Ownership

0.0% of Allianz shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Allianz has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Sompo has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Valuation and Earnings

This table compares Allianz 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
Allianz	$211.45 billion	0.93	$12.19 billion	$3.55	14.51
Sompo	$35.69 billion	1.21	$4.22 billion	$2.54	9.08

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

Summary

Allianz beats Sompo on 11 of the 15 factors compared between the two stocks.

About Allianz

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company’s Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company’s Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered 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.