Dai-ichi Life (DCNSF) and Its Peers Critical Review

Institutional and Insider Ownership

16.9% of Dai-ichi Life shares are owned by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are owned by institutional investors. 13.8% of shares of all “Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Dai-ichi Life and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dai-ichi Life	N/A	N/A	N/A
Dai-ichi Life Competitors	9.71%	10.83%	3.98%

Valuation and Earnings

This table compares Dai-ichi Life and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dai-ichi Life	N/A	N/A	0.07
Dai-ichi Life Competitors	$15.42 billion	$1.69 billion	33.64

Dai-ichi Life’s rivals have higher revenue and earnings than Dai-ichi Life. Dai-ichi Life is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Dai-ichi Life pays an annual dividend of $15.94 per share and has a dividend yield of 144.9%. Dai-ichi Life pays out 10.8% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 29.8% of their earnings in the form of a dividend. Dai-ichi Life is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Dai-ichi Life rivals beat Dai-ichi Life on 7 of the 9 factors compared.

About Dai-ichi Life

Dai-ichi Life Holdings, Inc., together its subsidiaries, provides insurance products in Japan, the United States, and internationally. It operates through Domestic Life Insurance Business, Overseas Insurance Business, and Other Business segments. The company offers individual life insurance and annuities. The company was formerly known as The Dai-Ichi Life Insurance Company, Limited and changed its name to Dai-ichi Life Holdings, Inc. in October 2016. The company was incorporated in 1902 and is headquartered in Tokyo, Japan.