Contrasting International General Insurance (NASDAQ:IGIC) & Sompo (OTCMKTS:SMPNY)

International General Insurance (NASDAQ:IGIC) and Sompo (OTCMKTS:SMPNY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Risk & Volatility

International General Insurance has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Sompo has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares International General Insurance and Sompo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International General Insurance	23.76%	18.36%	5.82%
Sompo	8.14%	13.04%	2.83%

Dividends

International General Insurance pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Sompo pays an annual dividend of $0.38 per share and has a dividend yield of 2.5%. International General Insurance pays out 7.2% of its earnings in the form of a dividend. Sompo pays out 25.5% 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. International General Insurance has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for International General Insurance and Sompo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International General Insurance	0	0	3	0	3.00
Sompo	0	0	0	0	0.00

International General Insurance currently has a consensus price target of $31.50, suggesting a potential upside of 40.50%. Given International General Insurance’s stronger consensus rating and higher probable upside, research analysts clearly believe International General Insurance is more favorable than Sompo.

Insider and Institutional Ownership

54.2% of International General Insurance shares are held by institutional investors. 20.1% of International General Insurance shares are held by insiders. 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.

Valuation & Earnings

This table compares International General Insurance and Sompo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International General Insurance	$539.00 million	1.86	$135.15 million	$2.76	8.12
Sompo	$35.81 billion	0.78	$2.79 billion	$1.49	10.04

Sompo has higher revenue and earnings than International General Insurance. International General Insurance is trading at a lower price-to-earnings ratio than Sompo, indicating that it is currently the more affordable of the two stocks.

Summary

International General Insurance beats Sompo on 12 of the 17 factors compared between the two stocks.

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.

About Sompo

Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care & Seniors Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and seniors services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; and health support services comprising health guidance and employee assistance programs. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.