Comparing Assurant (NYSE:AIZ) & Sompo (OTCMKTS:SMPNY)

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

Volatility and Risk

Assurant has a beta of 0.56, suggesting that its share price is 44% less 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Assurant	5.83%	16.47%	2.47%
Sompo	8.14%	13.04%	2.83%

Dividends

Assurant pays an annual dividend of $3.52 per share and has a dividend yield of 1.6%. Sompo pays an annual dividend of $0.38 per share and has a dividend yield of 2.5%. Assurant pays out 21.4% of its earnings in the form of a dividend. Sompo pays out 25.5% 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. Assurant has raised its dividend for 21 consecutive years.

Analyst Ratings

This is a summary of current ratings for Assurant and Sompo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Assurant	0	2	8	0	2.80
Sompo	0	0	0	0	0.00

Assurant presently has a consensus price target of $246.83, indicating a potential upside of 9.77%. Given Assurant’s stronger consensus rating and higher probable upside, equities analysts plainly believe Assurant is more favorable than Sompo.

Valuation and Earnings

This table compares Assurant and Sompo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Assurant	$12.57 billion	0.90	$760.20 million	$16.43	13.69
Sompo	$35.81 billion	0.79	$2.79 billion	$1.49	10.17

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

Insider and Institutional Ownership

92.7% of Assurant shares are owned by institutional investors. 0.5% of Assurant shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Assurant beats Sompo on 12 of the 17 factors compared between the two stocks.

About Assurant

Assurant, Inc., together with its subsidiaries, provides business services that supports, protects, and connects consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products; and vehicle protection, commercial equipment, and other related services. The Global Housing segment provides lender-placed homeowners, manufactured housing, and flood insurance; renters insurance and related products; and voluntary manufactured housing, and condominium and homeowners insurance products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in Atlanta, Georgia.

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.