Critical Comparison: Sampo (OTCMKTS:SAXPY) vs. MS&AD Insurance Group (OTCMKTS:MSADY)

MS&AD Insurance Group (OTCMKTS:MSADY) and Sampo (OTCMKTS:SAXPY) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider & Institutional Ownership

0.0% of MS&AD Insurance Group shares are owned by institutional investors. Comparatively, 0.0% of Sampo shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares MS&AD Insurance Group and Sampo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MS&AD Insurance Group	10.57%	16.56%	2.63%
Sampo	N/A	19.63%	5.56%

Valuation & Earnings

This table compares MS&AD Insurance Group and Sampo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MS&AD Insurance Group	$43.74 billion	0.80	$4.56 billion	$3.12	7.00
Sampo	$2.47 billion	48.88	$1.25 billion	$1.01	22.20

MS&AD Insurance Group has higher revenue and earnings than Sampo. MS&AD Insurance Group is trading at a lower price-to-earnings ratio than Sampo, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for MS&AD Insurance Group and Sampo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MS&AD Insurance Group	0	1	0	0	2.00
Sampo	0	1	0	1	3.00

Dividends

MS&AD Insurance Group pays an annual dividend of $0.82 per share and has a dividend yield of 3.8%. Sampo pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. MS&AD Insurance Group pays out 26.3% of its earnings in the form of a dividend. Sampo pays out 31.7% 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. MS&AD Insurance Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

MS&AD Insurance Group has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Sampo has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

About MS&AD Insurance Group

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers domestic non-life insurance; life insurance; international business; financial services; and provides risk-related services. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

About Sampo

Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services. The company was founded in 1909 and is based in Helsinki, Finland.