Genworth Financial (NYSE: GNW) and China Life Insurance Company Limited (NYSE:LFC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Profitability

This table compares Genworth Financial and China Life Insurance Company Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genworth Financial -1.66% -1.63% -0.23%
China Life Insurance Company Limited 3.52% 6.67% 0.75%

Volatility & Risk

Genworth Financial has a beta of 2.66, indicating that its stock price is 166% more volatile than the S&P 500. Comparatively, China Life Insurance Company Limited has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Insider and Institutional Ownership

67.6% of Genworth Financial shares are held by institutional investors. Comparatively, 0.2% of China Life Insurance Company Limited shares are held by institutional investors. 0.3% of Genworth Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Genworth Financial and China Life Insurance Company Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genworth Financial 0 3 2 0 2.40
China Life Insurance Company Limited 0 5 3 0 2.38

Genworth Financial currently has a consensus target price of $4.36, indicating a potential upside of 14.22%. Given Genworth Financial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Genworth Financial is more favorable than China Life Insurance Company Limited.

Valuation & Earnings

This table compares Genworth Financial and China Life Insurance Company Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Genworth Financial $8.74 billion 0.22 $852.00 million ($0.30) -12.73
China Life Insurance Company Limited $91.87 billion 0.94 $5.73 billion $0.53 28.70

China Life Insurance Company Limited has higher revenue and earnings than Genworth Financial. Genworth Financial is trading at a lower price-to-earnings ratio than China Life Insurance Company Limited, indicating that it is currently the more affordable of the two stocks.

Dividends

China Life Insurance Company Limited pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Genworth Financial does not pay a dividend. China Life Insurance Company Limited pays out 26.4% of its earnings in the form of a dividend. China Life Insurance Company Limited has increased its dividend for 3 consecutive years.

Summary

China Life Insurance Company Limited beats Genworth Financial on 10 of the 16 factors compared between the two stocks.

Genworth Financial Company Profile

Genworth Financial, Inc. (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.

China Life Insurance Company Limited Company Profile

China Life Insurance Company Limited is a life insurance company. The Company provides a range of insurance products, including individual and group life insurance, health insurance and accident insurance products. It operates through three segments: Life Insurance, Health Insurance, and Accident Insurance. Its Life Insurance segment provides participating and non-participating life insurance and annuities to individuals and groups. Its Health Insurance segment provides short-term and long-term health insurance to individuals and groups. Its Accident Insurance segment provides short-term and long-term accident insurance to individuals and groups.

Receive News & Ratings for Genworth Financial Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Genworth Financial Inc and related companies with MarketBeat.com's FREE daily email newsletter.