Analyzing Allianz (OTCMKTS:ALIZY) & Tokio Marine (OTCMKTS:TKOMY)

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

Insider & Institutional Ownership

0.0% of Allianz shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tokio Marine and Allianz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokio Marine	1	0	0	1	2.50
Allianz	0	2	2	1	2.80

Dividends

Tokio Marine pays an annual dividend of $1.06 per share and has a dividend yield of 2.0%. Allianz pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. Tokio Marine pays out 39.8% of its earnings in the form of a dividend. Allianz pays out 39.4% 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. Allianz is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tokio Marine	9.00%	14.68%	2.45%
Allianz	6.31%	18.33%	1.16%

Volatility and Risk

Tokio Marine has a beta of 0.02, indicating that its share price is 98% less volatile than the S&P 500. Comparatively, Allianz has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares Tokio Marine and Allianz”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	1.72	$6.47 billion	$2.66	19.66
Allianz	$211.45 billion	0.92	$12.19 billion	$3.55	14.43

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

Summary

Allianz beats Tokio Marine on 10 of the 14 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 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.