Contrasting Ping An Insurance Co. of China (OTCMKTS:PNGAY) & Allianz (OTCMKTS:ALIZY)

Ping An Insurance Co. of China (OTCMKTS:PNGAY) and Allianz (OTCMKTS:ALIZY) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

0.0% of Ping An Insurance Co. of China shares are owned by institutional investors. Comparatively, 0.0% of Allianz shares are owned by institutional investors. 0.1% of Ping An Insurance Co. of China shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Ping An Insurance Co. of China has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Allianz has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ping An Insurance Co. of China and Allianz”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ping An Insurance Co. of China	$158.64 billion	0.97	$18.75 billion	$2.01	8.34
Allianz	$211.45 billion	0.81	$12.19 billion	$3.14	14.40

Ping An Insurance Co. of China has higher earnings, but lower revenue than Allianz. Ping An Insurance Co. of China is trading at a lower price-to-earnings ratio than Allianz, indicating that it is currently the more affordable of the two stocks.

Dividends

Ping An Insurance Co. of China pays an annual dividend of $0.44 per share and has a dividend yield of 2.6%. Allianz pays an annual dividend of $1.36 per share and has a dividend yield of 3.0%. Ping An Insurance Co. of China pays out 21.9% of its earnings in the form of a dividend. Allianz pays out 43.3% 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 Recommendations

This is a summary of recent recommendations for Ping An Insurance Co. of China and Allianz, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ping An Insurance Co. of China	0	1	0	0	2.00
Allianz	1	3	2	1	2.43

Profitability

This table compares Ping An Insurance Co. of China and Allianz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ping An Insurance Co. of China	11.80%	10.91%	1.10%
Allianz	5.80%	17.50%	1.10%

Summary

Allianz beats Ping An Insurance Co. of China on 10 of the 15 factors compared between the two stocks.

About Ping An Insurance Co. of China

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services for insurance, banking, asset management, and technology businesses in the People's Republic of China. The company operates through Life and Health Insurance; Property and Casualty Insurance; Banking; Asset Management; and Technology segments. Its Life and Health Insurance segment offers term, whole-life, endowment, annuity, investment-linked, universal life, and health care and medical insurance to individual and corporate customers. The company's Property and Casualty Insurance segment provides auto, non-auto, and accident and health insurance to individual and corporate customers. Its Banking segment undertakes loan and intermediary businesses with corporate and retail customers; and offers wealth management and credit card services to individual customers. The company's Asset Management segment provides trust products services, brokerage services, trading services, investment banking services, investment management, finance lease, and other asset management services. Its Technology segment offers financial and daily-life services through internet platforms, such as financial transaction information service, and health care service platforms. The company also provides annuity insurance, IT and business process outsourcing, real estate investment and management, futures brokerage, project investment, currency brokerage, property agency, fund raising and distribution, real estate development and leasing, and insurance agency services. In addition, it provides factoring, equity investment, logistics and warehousing, management consulting, e-commerce, and credit information services; and operates an expressway, as well as produces and sells consumer chemicals. The company was incorporated in 1988 and is based in Shenzhen, China.

About Allianz

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company’s Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company’s Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.