Ryan Specialty (NYSE:RYAN) versus Tokio Marine (OTCMKTS:TKOMY) Critical Contrast

Tokio Marine (OTCMKTS:TKOMY) and Ryan Specialty (NYSE:RYAN) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tokio Marine and Ryan Specialty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokio Marine	1	0	0	1	2.50
Ryan Specialty	1	10	8	0	2.37

Ryan Specialty has a consensus price target of $52.21, indicating a potential upside of 19.56%. Given Ryan Specialty’s higher possible upside, analysts plainly believe Ryan Specialty is more favorable than Tokio Marine.

Institutional and Insider Ownership

84.8% of Ryan Specialty shares are held by institutional investors. 52.0% of Ryan Specialty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Tokio Marine and Ryan Specialty”s 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	20.72
Ryan Specialty	$3.05 billion	3.66	$63.40 million	$0.72	60.64

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

Profitability

This table compares Tokio Marine and Ryan Specialty’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%
Ryan Specialty	7.55%	43.97%	4.78%

Dividends

Tokio Marine pays an annual dividend of $0.07 per share and has a dividend yield of 1.9%. Ryan Specialty pays an annual dividend of $0.52 per share and has a dividend yield of 1.2%. Tokio Marine pays out 38.9% of its earnings in the form of a dividend. Ryan Specialty pays out 72.2% 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. Ryan Specialty has increased its dividend for 1 consecutive years. Tokio Marine is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Tokio Marine has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Ryan Specialty has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Summary

Ryan Specialty beats Tokio Marine on 11 of the 18 factors compared between the two stocks.

About Tokio Marine

Tokio Marine Holdings, Inc., together with its subsidiaries, engages in non-life and life insurance, international insurance, and financial and general businesses worldwide. The company provides business, fire, Internet and mobile, rental housing, and natural catastrophe risk insurance services, as well as insurance for retail and corporate fields. It also provides property investment, insurance agency and risk consulting, human resource, in-home care and nursing care information, healthcare/medical, call center, and real estate-related services. Tokio Marine Holdings, Inc. serves individuals, small to medium sized non-profit organizations, schools, or churches. The company was formerly known as Millea Holdings, Inc. and changed its name to Tokio Marine Holdings, Inc. in 2008. Tokio Marine Holdings, Inc. was founded in 1879 and is headquartered in Tokyo, Japan.

About Ryan Specialty

Ryan Specialty Holdings, Inc. operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers in the United States, Canada, the United Kingdom, Europe, and Singapore. It offers distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter. The company serves commercial, industrial, institutional, and government sectors. Ryan Specialty Holdings, Inc. was founded in 2010 and is headquartered in Chicago, Illinois.