Head to Head Analysis: China Life Insurance (LFC) and Its Peers

China Life Insurance (NYSE: LFC) is one of 38 public companies in the “Life insurance” industry, but how does it weigh in compared to its peers? We will compare China Life Insurance to similar companies based on the strength of its analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Insider and Institutional Ownership

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0.4% of China Life Insurance shares are held by institutional investors. Comparatively, 49.3% of shares of all “Life insurance” companies are held by institutional investors. 18.9% of shares of all “Life insurance” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for China Life Insurance and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Life Insurance 1 3 5 0 2.44
China Life Insurance Competitors 317 1126 1513 83 2.45

As a group, “Life insurance” companies have a potential upside of 9.71%. Given China Life Insurance’s peers stronger consensus rating and higher probable upside, analysts plainly believe China Life Insurance has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares China Life Insurance and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Life Insurance $105.48 billion $4.77 billion 14.82
China Life Insurance Competitors $22.05 billion $1.24 billion 15.91

China Life Insurance has higher revenue and earnings than its peers. China Life Insurance 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.

Dividends

China Life Insurance pays an annual dividend of $0.14 per share and has a dividend yield of 1.0%. China Life Insurance pays out 15.1% of its earnings in the form of a dividend. As a group, “Life insurance” companies pay a dividend yield of 2.2% and pay out 28.7% of their earnings in the form of a dividend.

Profitability

This table compares China Life Insurance and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Life Insurance 5.09% 10.17% 1.14%
China Life Insurance Competitors 4.44% 4.85% 0.81%

Risk and Volatility

China Life Insurance has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, China Life Insurance’s peers have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Summary

China Life Insurance beats its peers on 8 of the 15 factors compared.

China Life Insurance Company Profile

China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the People's Republic of China. The company operates in four segments: Life Insurance Business, Health Insurance Business, Accident Insurance Business, and Other Business. It offers individual and group life, annuity, accident, and health insurance products, as well as provides pension products. The company is also involved in reinsurance business; the asset management, fund management, and health management activities; retirement properties investment; and provision of financial services. It sells its products through agents, direct sales representatives, and dedicated and non-dedicated agencies. The company was founded in 1949 and is based in Beijing, the People's Republic of China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company Limited.

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