Critical Review: Power Co. of Canada (PWCDF) versus The Competition

Power Co. of Canada (OTCMKTS:PWCDF) is one of 316 publicly-traded companies in the “Insurance” industry, but how does it compare to its peers? We will compare Power Co. of Canada to related companies based on the strength of its analyst recommendations, dividends, valuation, profitability, earnings, risk and institutional ownership.

Insider & Institutional Ownership

41.7% of Power Co. of Canada shares are owned by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are owned by institutional investors. 13.8% of shares of all “Insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Power Co. of Canada and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Co. of Canada	N/A	N/A	N/A
Power Co. of Canada Competitors	10.79%	10.80%	3.96%

Dividends

Power Co. of Canada pays an annual dividend of $1.16 per share and has a dividend yield of 1.7%. Power Co. of Canada pays out 42.6% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 30.3% of their earnings in the form of a dividend. Power Co. of Canada lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of current recommendations for Power Co. of Canada and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Co. of Canada	0	4	4	0	2.50
Power Co. of Canada Competitors	3191	15217	16024	663	2.40

As a group, “Insurance” companies have a potential upside of 5.33%. Given Power Co. of Canada’s peers higher possible upside, analysts plainly believe Power Co. of Canada has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Power Co. of Canada and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Power Co. of Canada	N/A	N/A	24.57
Power Co. of Canada Competitors	$15.33 billion	$1.69 billion	32.89

Power Co. of Canada’s peers have higher revenue and earnings than Power Co. of Canada. Power Co. of Canada 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.

Summary

Power Co. of Canada peers beat Power Co. of Canada on 11 of the 13 factors compared.

Power Co. of Canada Company Profile

Power Corporation of Canada, an international management and holding company, offers financial services in North America, Europe, and Asia. It operates through Lifeco, IGM Financial, and GBL segments. The company offers life, health and dental, disability, critical illness, and creditor insurance; accidental death and dismemberment; retirement savings and income and annuity products; and life assurance, pension, and investment products to individuals and small business owners. It also provides investment services, asset management and reinsurance business; wealth management; strategic investment; listed and private investments, as well as of alternative investments; employer-sponsored retirement savings plans in the public/non-profit and corporate sectors; and payout annuity and equity release mortgages products. The company was incorporated in 1925 and is based in Montreal, Canada. Power Corporation of Canada operates as a subsidiary of Pansolo Holding Inc.