Contrasting Aviva Plc (AV) & China Life Insurance Company Limited (NYSE:LFC)

China Life Insurance Company Limited (NYSE: LFC) and Aviva Plc (NYSE:AV) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Profitability

This table compares China Life Insurance Company Limited and Aviva Plc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Life Insurance Company Limited 3.40% 6.37% 0.73%
Aviva Plc N/A N/A N/A

Volatility & Risk

China Life Insurance Company Limited has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Aviva Plc has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Dividends

China Life Insurance Company Limited pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Aviva Plc pays an annual dividend of $0.55 per share and has a dividend yield of 4.7%. China Life Insurance Company Limited pays out 27.5% of its earnings in the form of a dividend. China Life Insurance Company Limited has raised its dividend for 3 consecutive years and Aviva Plc has raised its dividend for 3 consecutive years.

Earnings and Valuation

This table compares China Life Insurance Company Limited and Aviva Plc’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Life Insurance Company Limited $89.10 billion 0.25 $5.33 billion $0.51 29.18
Aviva Plc N/A N/A N/A N/A N/A

China Life Insurance Company Limited has higher revenue and earnings than Aviva Plc.

Insider & Institutional Ownership

0.2% of China Life Insurance Company Limited shares are held by institutional investors. Comparatively, 0.8% of Aviva Plc shares are held by institutional investors. 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.

Analyst Ratings

This is a breakdown of recent recommendations for China Life Insurance Company Limited and Aviva Plc, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Life Insurance Company Limited 0 5 3 0 2.38
Aviva Plc 0 2 1 0 2.33

Summary

China Life Insurance Company Limited beats Aviva Plc on 7 of the 10 factors compared between the two stocks.

About China Life Insurance Company Limited

China Life Insurance Company Limited is a life insurance company. The Company provides a range of insurance products, including individual and group life insurance, health insurance and accident insurance products. It operates through three segments: Life Insurance, Health Insurance, and Accident Insurance. Its Life Insurance segment provides participating and non-participating life insurance and annuities to individuals and groups. Its Health Insurance segment provides short-term and long-term health insurance to individuals and groups. Its Accident Insurance segment provides short-term and long-term accident insurance to individuals and groups.

About Aviva Plc

Aviva plc is a holding company. The Company provides customers with long-term insurance and savings, general and health insurance, and fund management products and services. Its segments include United Kingdom & Ireland; France; Poland; Italy, Spain and Other; Canada; Asia; Aviva Investors, and Other Group activities. The United Kingdom and Ireland segment consists of two operating segments: Life and General Insurance. The principal activities of its French operations are long-term business and general insurance. Its Poland Activities in Poland consist of long-term business and general insurance operations. Its Italian operations are long-term business and general insurance. The principal activity of the Canadian operation is general insurance. Its activities in Asia consist of its long-term business operations in China, India, Singapore, Hong Kong, Vietnam, Indonesia, Taiwan and international operations. The Aviva Investors segment offers a range of asset management services.

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