Aviva (AVVIY) & Its Peers Critical Analysis
Aviva (OTCMKTS: AVVIY) is one of 38 publicly-traded companies in the “Life insurance” industry, but how does it compare to its peers? We will compare Aviva to similar businesses based on the strength of its dividends, earnings, profitability, valuation, institutional ownership, analyst recommendations and risk.
Institutional & Insider Ownership
0.3% of Aviva shares are owned by institutional investors. Comparatively, 49.3% of shares of all “Life insurance” companies are owned by institutional investors. 18.8% of shares of all “Life insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Aviva pays an annual dividend of $1.01 per share and has a dividend yield of 6.9%. Aviva pays out 72.7% 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.
Risk and Volatility
Aviva has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Aviva’s peers have a beta of 1.06, indicating that their average stock price is 6% more volatile than the S&P 500.
Earnings & Valuation
This table compares Aviva and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Aviva||$63.97 billion||$1.93 billion||10.50|
|Aviva Competitors||$22.05 billion||$1.25 billion||16.02|
Aviva has higher revenue and earnings than its peers. Aviva 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.
This table compares Aviva and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Aviva and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Life insurance” companies have a potential upside of 9.01%. Given Aviva’s peers higher probable upside, analysts clearly believe Aviva has less favorable growth aspects than its peers.
Aviva peers beat Aviva on 8 of the 14 factors compared.
Aviva Company Profile
Aviva plc provides life insurance, general insurance, accident and health insurance, and asset management products and services worldwide. The company's long-term insurance and savings products include Annuities; equity release products; pension products, such as personal and group pensions, stakeholder pensions, and income drawdown; protection products, including term assurance, mortgage life insurance, flexible whole of life, and critical illness cover and group schemes; bonds and savings comprising single premium investment bonds and regular premium savings plans; and investment products consisting of unit trusts, individual savings accounts, and open ended investment companies. Its general and health insurance products comprise personal lines of insurance products, such as motor, household, travel, and creditor insurance; commercial lines of insurance products, including fleet, liability, and commercial property insurance; health insurance products consisting of private health, income protection, and personal accident products, as well as various corporate healthcare insurance products; and insurance for corporate and specialty risks. In addition, the company offers asset management services to third-party investors. It sells its products through a range of distribution channels, including direct sales force, intermediaries, corporate partnerships, bancassurance, and joint ventures, as well as through the telephone and Internet. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom.
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