Critical Review: SONY FINL HOLDI/ADR (SNYFY) versus The Competition

SONY FINL HOLDI/ADR (OTCMKTS: SNYFY) is one of 40 publicly-traded companies in the “Life insurance” industry, but how does it compare to its competitors? We will compare SONY FINL HOLDI/ADR to related businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

57.9% of shares of all “Life insurance” companies are held by institutional investors. 10.0% of shares of all “Life 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.

Volatility and Risk

SONY FINL HOLDI/ADR has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, SONY FINL HOLDI/ADR’s competitors have a beta of 0.94, suggesting that their average stock price is 6% less volatile than the S&P 500.

Earnings and Valuation

This table compares SONY FINL HOLDI/ADR and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
SONY FINL HOLDI/ADR $14.79 billion $558.67 million 16.58
SONY FINL HOLDI/ADR Competitors $18.20 billion $1.03 billion 13.42

SONY FINL HOLDI/ADR’s competitors have higher revenue and earnings than SONY FINL HOLDI/ADR. SONY FINL HOLDI/ADR is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

SONY FINL HOLDI/ADR pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. SONY FINL HOLDI/ADR pays out 80.0% 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, “Life insurance” companies pay a dividend yield of 1.9% and pay out 19.6% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for SONY FINL HOLDI/ADR and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SONY FINL HOLDI/ADR 0 0 0 0 N/A
SONY FINL HOLDI/ADR Competitors 565 1577 1803 104 2.36

As a group, “Life insurance” companies have a potential upside of 8.50%. Given SONY FINL HOLDI/ADR’s competitors higher probable upside, analysts clearly believe SONY FINL HOLDI/ADR has less favorable growth aspects than its competitors.

Profitability

This table compares SONY FINL HOLDI/ADR and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SONY FINL HOLDI/ADR 4.06% 10.35% 0.50%
SONY FINL HOLDI/ADR Competitors 8.50% 8.40% 1.00%

Summary

SONY FINL HOLDI/ADR competitors beat SONY FINL HOLDI/ADR on 9 of the 12 factors compared.

SONY FINL HOLDI/ADR Company Profile

Sony Financial Holdings Inc., together with its subsidiaries, provides financial services in Japan and internationally. The company operates in life insurance, non-life insurance, and banking businesses. Its insurance products include death-protection, medical, educational endowment, living benefit, and other insurance products; and non-life insurance products comprise automobile, medical, and cancer insurance products, as well as reinsurance services. The company's banking business provides Yen and foreign currency deposits, and mortgage loans, as well as investment trust, foreign currency margin trading, and other services; and credit card settlement services, as well as plans, develops, and operates nursing care homes. It provides its products through lifeplanner sales employees and independent agencies, as well as through Internet and telephone. The company was founded in 1979 and is headquartered in Tokyo, Japan. Sony Financial Holdings Inc. is a subsidiary of Sony Corporation.

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