Critical Review: Dai-ichi Life (DCNSF) & Its Competitors

Profitability

This table compares Dai-ichi Life and its peers’ net margins, return on equity and return on assets.

Dividends

Dai-ichi Life pays an annual dividend of $15.94 per share and has a dividend yield of 131.2%. Dai-ichi Life pays out 10.8% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 29.9% of their earnings in the form of a dividend. Dai-ichi Life is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

16.9% of Dai-ichi Life shares are held by institutional investors. Comparatively, 55.7% of shares of all “Insurance” companies are held by institutional investors. 13.9% of shares of all “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.

Valuation and Earnings

This table compares Dai-ichi Life and its peers top-line revenue, earnings per share and valuation.

Dai-ichi Life’s peers have higher revenue and earnings than Dai-ichi Life. Dai-ichi Life 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

Dai-ichi Life peers beat Dai-ichi Life on 7 of the 9 factors compared.

About Dai-ichi Life

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Dai-ichi Life Holdings, Inc., together its subsidiaries, provides insurance products in Japan, the United States, and internationally. It operates through Domestic Life Insurance Business, Overseas Insurance Business, and Other Business segments. The company offers individual life insurance and annuities. The company was formerly known as The Dai-Ichi Life Insurance Company, Limited and changed its name to Dai-ichi Life Holdings, Inc. in October 2016. The company was incorporated in 1902 and is headquartered in Tokyo, Japan.