China Life Insurance (LFC) versus Its Peers Head-To-Head Contrast

China Life Insurance (NYSE: LFC) is one of 38 publicly-traded companies in the “Life insurance” industry, but how does it compare to its peers? We will compare China Life Insurance to similar businesses based on the strength of its valuation, profitability, analyst recommendations, dividends, earnings, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
China Life Insurance 5.09% 10.17% 1.14%
China Life Insurance Competitors 4.44% 4.85% 0.81%

Earnings & Valuation

This table compares China Life Insurance and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Life Insurance $105.48 billion $4.77 billion 14.97
China Life Insurance Competitors $22.05 billion $1.25 billion 16.05

China Life Insurance has higher revenue and earnings than its peers. China Life Insurance is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for China Life Insurance and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Life Insurance 1 3 5 0 2.44
China Life Insurance Competitors 318 1127 1516 83 2.45

As a group, “Life insurance” companies have a potential upside of 8.83%. Given China Life Insurance’s peers stronger consensus rating and higher possible upside, analysts clearly believe China Life Insurance has less favorable growth aspects than its peers.

Insider & Institutional Ownership

0.4% of China Life Insurance shares are held by institutional investors. Comparatively, 49.3% of shares of all “Life insurance” companies are held by institutional investors. 18.8% of shares of all “Life insurance” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

China Life Insurance has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, China Life Insurance’s peers have a beta of 1.07, suggesting that their average share price is 7% more volatile than the S&P 500.

Dividends

China Life Insurance pays an annual dividend of $0.14 per share and has a dividend yield of 1.0%. China Life Insurance pays out 15.1% of its earnings in the form of a dividend. As a group, “Life insurance” companies pay a dividend yield of 2.2% and pay out 28.7% of their earnings in the form of a dividend.

Summary

China Life Insurance beats its peers on 9 of the 15 factors compared.

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 based 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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