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

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Allianz and Tokio Marine, as reported by MarketBeat.

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

Institutional and Insider Ownership

0.0% of Allianz shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

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

Risk & Volatility

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

Dividends

Allianz pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. Tokio Marine pays an annual dividend of $1.06 per share and has a dividend yield of 2.0%. Allianz pays out 39.4% of its earnings in the form of a dividend. Tokio Marine pays out 39.8% 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.

Valuation and Earnings

This table compares Allianz and Tokio Marine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allianz	$211.45 billion	0.92	$12.19 billion	$3.55	14.43
Tokio Marine	$58.94 billion	1.72	$6.47 billion	$2.66	19.66

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 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.

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.