Power Co. of Canada (OTCMKTS:PWCDF – Get Rating) and Great-West Lifeco (OTCMKTS:GWLIF – Get Rating) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Valuation and Earnings
This table compares Power Co. of Canada and Great-West Lifeco’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Power Co. of Canada||N/A||N/A||N/A||$2.72||9.05|
Power Co. of Canada is trading at a lower price-to-earnings ratio than Great-West Lifeco, indicating that it is currently the more affordable of the two stocks.
|Net Margins||Return on Equity||Return on Assets|
|Power Co. of Canada||N/A||N/A||N/A|
Power Co. of Canada pays an annual dividend of $1.16 per share and has a dividend yield of 4.7%. Great-West Lifeco pays an annual dividend of $1.23 per share and has a dividend yield of 4.9%. Power Co. of Canada pays out 42.6% of its earnings in the form of a dividend. Great-West Lifeco pays out 47.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of recent ratings and recommmendations for Power Co. of Canada and Great-West Lifeco, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Power Co. of Canada||0||1||0||0||2.00|
Power Co. of Canada currently has a consensus price target of $38.86, suggesting a potential upside of 57.76%. Great-West Lifeco has a consensus price target of $35.78, suggesting a potential upside of 43.91%. Given Power Co. of Canada’s higher possible upside, analysts plainly believe Power Co. of Canada is more favorable than Great-West Lifeco.
Institutional and Insider Ownership
41.7% of Power Co. of Canada shares are held by institutional investors. Comparatively, 11.8% of Great-West Lifeco shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
About Power Co. of Canada
Power Corp. of Canada is a management and holding company, which engages in the provision of financial services; asset management; and sustainable and renewable energy. It operates through the following segments: Lifeco, IGM Financial, and GBL. The Lifeco segment offers life and health insurance, retirement, and investment management services, and involves in the asset management and reinsurance businesses. The IGM Financial segment provides investment advisory and management services. The GBL segment focuses on long-term and sustainable value creation and is indirectly held through Parjointco. The company was founded by Arthur J. Nesbitt and Peter A. Thomson on April 18, 1925 and is headquartered in Montreal, Canada.
About Great-West Lifeco
Great-West Lifeco, Inc. is a financial services holding company, which engages in the provision of life insurance, health insurance, retirement services, investment management and reinsurance services. It operates through the following segments: Canada, United States, Europe, and Lifeco Corporate. The Canada segment provides individual & group life insurance through the Great-West Life, London Life and Canada Life. The United States segment offers asset management and financial services through the Great-West Financial, Putnam and insurance businesses in the branches of Great-West Life and Canada Life located in the U.S. The Europe segment consists of insurance, annuities and reinsurance business units. The Lifeco Corporate segment includes operating results for activities of Lifeco that are not associated with the major business units of the firm. The company was founded on November 8, 1979 and is headquartered in Winnipeg, Canada.
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