Head-To-Head Comparison: Tokio Marine (OTCMKTS:TKOMY) vs. Investors Title (NASDAQ:ITIC)

Tokio Marine (OTCMKTS:TKOMY) and Investors Title (NASDAQ:ITIC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

41.4% of Investors Title shares are held by institutional investors. 26.0% of Investors Title shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tokio Marine and Investors Title”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokio Marine	$58.94 billion	1.84	$6.47 billion	$0.18	20.78
Investors Title	$272.76 million	1.74	$35.18 million	$19.87	12.66

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

Profitability

This table compares Tokio Marine and Investors Title’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokio Marine	9.00%	13.06%	2.45%
Investors Title	12.47%	13.43%	10.05%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tokio Marine and Investors Title, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokio Marine	0	1	0	1	3.00
Investors Title	0	0	1	0	3.00

Volatility and Risk

Tokio Marine has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Investors Title has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Dividends

Tokio Marine pays an annual dividend of $0.07 per share and has a dividend yield of 1.9%. Investors Title pays an annual dividend of $1.84 per share and has a dividend yield of 0.7%. Tokio Marine pays out 38.9% of its earnings in the form of a dividend. Investors Title pays out 9.3% 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.

Summary

Investors Title beats Tokio Marine on 9 of the 15 factors compared between the two stocks.

About Tokio Marine

Tokio Marine Holdings, Inc. is a Japanese insurance group headquartered in Tokyo. Its history dates to 1879, when Tokio Marine Insurance was established as Japan’s first insurance company. The company provides property and casualty insurance, life insurance, reinsurance, and related risk-management services. Its offerings serve individuals and businesses and include coverage for areas such as auto, property, marine, and commercial risks. Tokio Marine operates in Japan and internationally, with business across the Americas, Europe, and other parts of Asia.

About Investors Title

Investors Title Company (NASDAQ: ITIC) is a title insurance and real estate services company headquartered in Chapel Hill, North Carolina. Through its subsidiaries, it provides title insurance that helps protect property owners and mortgage lenders against certain losses arising from defects in a property’s title. The company also offers related services, including title examination and settlement support, as well as tax-deferred exchange services for real estate transactions. It distributes its products through a network of agents and its own operations in multiple U.S. states.