Old Mutual (ODMUF) versus Its Competitors Critical Contrast

Profitability

This table compares Old Mutual and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Old Mutual	N/A	N/A	N/A
Old Mutual Competitors	9.76%	10.79%	3.96%

Institutional & Insider Ownership

28.5% of Old Mutual shares are held by institutional investors. Comparatively, 55.7% of shares of all “Insurance” companies are held by institutional investors. 13.9% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Old Mutual and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Old Mutual	N/A	N/A	7.33
Old Mutual Competitors	$15.52 billion	$1.69 billion	33.72

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

Dividends

Old Mutual pays an annual dividend of $0.08 per share and has a dividend yield of 10.4%. Old Mutual pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Summary

Old Mutual peers beat Old Mutual on 8 of the 9 factors compared.

About Old Mutual

Old Mutual Limited, together with its subsidiaries, provides financial services primarily in South Africa and rest of Africa. The company operates through Mass and Foundation Cluster, Personal Finance and Wealth Management, Old Mutual Investments, Old Mutual Corporate, Old Mutual Insure, and Old Mutual Africa Regions segments. It offers risk products, including group risk and funeral covers; savings; lending; and transactional products. It also provides financial advice, investment, and income products, as well as asset management services. In addition, the company offers investments, annuities, and consulting services to employee-sponsored retirement and benefit funds; and life, property, and casualty insurance products. It serves low-income and lower-middle income markets; high income and high net worth individuals; and employee-sponsored retirement and benefit funds. The company was founded in 1845 and is based in Cape Town, South Africa.