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

Dividends

China Life Insurance pays an annual dividend of $0.27 per share and has a dividend yield of 2.1%. Voya Financial pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. China Life Insurance pays out 29.0% of its earnings in the form of a dividend. Voya Financial pays out 1.3% 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.

Analyst Ratings

This is a breakdown of recent recommendations for China Life Insurance and Voya Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Life Insurance 2 1 7 0 2.50
Voya Financial 0 3 11 0 2.79

China Life Insurance presently has a consensus target price of $13.85, indicating a potential upside of 9.83%. Voya Financial has a consensus target price of $59.46, indicating a potential upside of 25.90%. Given Voya Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Voya Financial is more favorable than China Life Insurance.

Risk & Volatility

China Life Insurance has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, Voya Financial has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

0.3% of China Life Insurance shares are held by institutional investors. 0.4% of Voya Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
China Life Insurance 6.27% 12.27% 1.38%
Voya Financial -25.86% 4.01% 0.23%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Life Insurance $105.48 billion 0.68 $4.77 billion $0.93 13.56
Voya Financial $8.62 billion 0.93 -$2.99 billion $3.01 15.69

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

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. 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 headquartered in Beijing, the People's Republic of China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company Limited.

About Voya Financial

Voya Financial, Inc. operates as a retirement, investment, and insurance company in the United States. It operates through Retirement, Investment Management, Individual Life, and Employee Benefits segments. The Retirement segment offers tax-deferred employer-sponsored retirement savings plans and administrative services; and individual account rollover plans and other retail financial products, as well as financial planning and advisory services. This segment serves corporate, education, healthcare, and other non-profit and government entities, as well as institutional and individual customers through third-party administrators, wirehouse affiliated brokers, registered investment advisors, independent sales agents, and consulting firms. The Investment Management segment provides fixed income, equity, multi-asset, and alternative products and solutions to individual and institutional customers directly, as well as through consultant channel, banks, broker-dealers, and independent financial advisers. The Individual Life segment provides wealth protection and transfer opportunities through universal, variable, and term life products. The Employee Benefits segment offers stop loss, group life, voluntary employee-paid, and disability products through consultants, brokers, third-party administrators, enrollment firms, and technology partners. The company was formerly known as ING U.S., Inc. and changed its name to Voya Financial, Inc. in April 2014. Voya Financial, Inc. was incorporated in 1999 and is based in New York, New York.

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