Critical Contrast: Old Mutual (ODMUF) and Its Rivals

Dividends

Old Mutual pays an annual dividend of $0.08 per share and has a dividend yield of 10.4%. Old Mutual pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 31.2% of their earnings in the form of a dividend.

Insider & Institutional Ownership

28.5% of Old Mutual shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Insurance” companies are owned by institutional investors. 13.8% of shares of all “Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Old Mutual and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Old Mutual	N/A	N/A	7.33
Old Mutual Competitors	$15.45 billion	$1.70 billion	33.79

Old Mutual’s competitors have higher revenue and earnings than Old Mutual. Old Mutual is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Old Mutual and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Old Mutual	N/A	N/A	N/A
Old Mutual Competitors	10.70%	10.89%	3.96%

Summary

Old Mutual competitors beat Old Mutual on 8 of the 9 factors compared.

Old Mutual Company Profile

Old Mutual Limited, together with its subsidiaries, provides financial services primarily in South Africa and rest of Africa. The company operates through Mass and Foundation Cluster, Personal Finance and Wealth Management, Old Mutual Investments, Old Mutual Corporate, Old Mutual Insure, and Old Mutual Africa Regions segments. It offers risk products, including group risk and funeral covers; savings; lending; and transactional products. It also provides financial advice, investment, and income products, as well as asset management services. In addition, the company offers investments, annuities, and consulting services to employee-sponsored retirement and benefit funds; and life, property, and casualty insurance products. It serves low-income and lower-middle income markets; high income and high net worth individuals; and employee-sponsored retirement and benefit funds. The company was founded in 1845 and is based in Cape Town, South Africa.