Tokio Marine (TKOMY) versus The Competition Financial Analysis

Tokio Marine (OTCMKTS:TKOMY) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it weigh in compared to its peers? We will compare Tokio Marine to similar businesses based on the strength of its risk, dividends, profitability, valuation, earnings, institutional ownership and analyst recommendations.

Insider and Institutional Ownership

55.9% of shares of all “Insurance” companies are held by institutional investors. 13.4% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Tokio Marine and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tokio Marine	$58.94 billion	$6.47 billion	20.67
Tokio Marine Competitors	$15.36 billion	$1.70 billion	33.73

Tokio Marine has higher revenue and earnings than its peers. Tokio Marine 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.

Analyst Ratings

This is a breakdown of current recommendations for Tokio Marine and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokio Marine	0	1	0	1	3.00
Tokio Marine Competitors	3342	15707	16550	743	2.40

As a group, “Insurance” companies have a potential upside of 4.73%. Given Tokio Marine’s peers higher probable upside, analysts clearly believe Tokio Marine has less favorable growth aspects than its peers.

Dividends

Tokio Marine pays an annual dividend of $0.07 per share and has a dividend yield of 1.9%. Tokio Marine pays out 38.9% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 31.2% of their earnings in the form of a dividend. Tokio Marine lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Tokio Marine and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokio Marine	9.00%	13.06%	2.45%
Tokio Marine Competitors	8.67%	-9.88%	4.11%

Risk & Volatility

Tokio Marine has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500. Comparatively, Tokio Marine’s peers have a beta of -1.59, indicating that their average share price is 259% less volatile than the S&P 500.

Summary

Tokio Marine peers beat Tokio Marine on 8 of the 15 factors compared.

About Tokio Marine

Tokio Marine Holdings, Inc. is a Japanese insurance group headquartered in Tokyo. Its history dates to 1879, when Tokio Marine Insurance was established as Japan’s first insurance company. The company provides property and casualty insurance, life insurance, reinsurance, and related risk-management services. Its offerings serve individuals and businesses and include coverage for areas such as auto, property, marine, and commercial risks. Tokio Marine operates in Japan and internationally, with business across the Americas, Europe, and other parts of Asia.