Financial Review: UTG (OTCMKTS:UTGN) and China Life Insurance (OTCMKTS:LFC)

UTG (OTCMKTS:UTGN) and China Life Insurance (NYSE:LFC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for UTG and China Life Insurance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UTG 0 0 0 0 N/A
China Life Insurance 0 5 4 0 2.44

Earnings & Valuation

This table compares UTG and China Life Insurance’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UTG $41.27 million 2.43 $12.39 million N/A N/A
China Life Insurance $91.03 billion 0.82 $1.72 billion $0.28 47.00

China Life Insurance has higher revenue and earnings than UTG.

Risk & Volatility

UTG has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500. Comparatively, China Life Insurance has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Dividends

China Life Insurance pays an annual dividend of $0.09 per share and has a dividend yield of 0.7%. UTG does not pay a dividend. China Life Insurance pays out 32.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.3% of China Life Insurance shares are owned by institutional investors. 69.8% of UTG shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
UTG N/A 18.44% 5.24%
China Life Insurance 3.60% 7.04% 0.75%

Summary

China Life Insurance beats UTG on 7 of the 12 factors compared between the two stocks.

About UTG

UTG, Inc., an insurance holding company, provides individual life insurance products and services in the United States. Its individual life insurance includes servicing of existing insurance business in-force; the acquisition of other companies in the insurance business; and the administration processing of life insurance business for other entities. The company also offers reinsurance products. The company was founded in 1984 and is headquartered in Stanford, Kentucky.

About China Life Insurance

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