Head to Head Comparison: Sompo (OTCMKTS:SMPNY) & Everest Group (NYSE:EG)

Sompo (OTCMKTS:SMPNY) and Everest Group (NYSE:EG) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Sompo and Everest Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sompo	0	0	0	0	0.00
Everest Group	0	10	6	0	2.38

Everest Group has a consensus price target of $366.14, suggesting a potential upside of 4.19%. Given Everest Group’s stronger consensus rating and higher possible upside, analysts clearly believe Everest Group is more favorable than Sompo.

Profitability

This table compares Sompo and Everest Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sompo	10.62%	13.26%	3.54%
Everest Group	9.09%	12.50%	3.08%

Dividends

Sompo pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.3%. Sompo pays out 13.7% of its earnings in the form of a dividend. Everest Group pays out 21.1% 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. Everest Group has raised its dividend for 1 consecutive years. Everest Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

92.6% of Everest Group shares are owned by institutional investors. 0.7% of Everest Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Sompo has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Everest Group has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Valuation and Earnings

This table compares Sompo and Everest Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sompo	$35.81 billion	0.98	$2.79 billion	$2.05	9.20
Everest Group	$17.50 billion	1.00	$1.59 billion	$37.86	9.28

Sompo has higher revenue and earnings than Everest Group. Sompo is trading at a lower price-to-earnings ratio than Everest Group, indicating that it is currently the more affordable of the two stocks.

Summary

Everest Group beats Sompo on 10 of the 17 factors compared between the two stocks.

About Sompo

Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care & Seniors Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and seniors services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; and health support services comprising health guidance and employee assistance programs. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.