Contrasting Genworth Financial (NYSE:GNW) & SONY FINL HOLDI/ADR (NYSE:SNYFY)

Genworth Financial (NYSE:GNW) and SONY FINL HOLDI/ADR (OTCMKTS:SNYFY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Genworth Financial and SONY FINL HOLDI/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genworth Financial 0 1 0 0 2.00
SONY FINL HOLDI/ADR 0 0 0 0 N/A

Risk and Volatility

Genworth Financial has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, SONY FINL HOLDI/ADR has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Genworth Financial and SONY FINL HOLDI/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genworth Financial $8.43 billion 0.23 $119.00 million $0.36 10.83
SONY FINL HOLDI/ADR $14.79 billion 0.65 $558.67 million $1.30 17.00

SONY FINL HOLDI/ADR has higher revenue and earnings than Genworth Financial. Genworth Financial is trading at a lower price-to-earnings ratio than SONY FINL HOLDI/ADR, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

65.4% of Genworth Financial shares are held by institutional investors. 0.7% of Genworth Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

SONY FINL HOLDI/ADR pays an annual dividend of $1.04 per share and has a dividend yield of 4.7%. Genworth Financial does not pay a dividend. SONY FINL HOLDI/ADR pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Genworth Financial and SONY FINL HOLDI/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genworth Financial 0.37% 1.03% 0.15%
SONY FINL HOLDI/ADR 4.06% 10.35% 0.50%

Summary

SONY FINL HOLDI/ADR beats Genworth Financial on 9 of the 13 factors compared between the two stocks.

About Genworth Financial

Genworth Financial, Inc. provides insurance and homeownership solutions in the United States and internationally. It operates through five segments: U.S. Mortgage Insurance, Canada Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff. The U.S. Mortgage Insurance segment offers mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans. The Canada Mortgage Insurance segment provides flow mortgage insurance; and bulk mortgage insurance that aid in the sale of mortgages to the capital markets, as well as helps lenders manage capital and risk in Canada. The Australia Mortgage Insurance segment offers flow mortgage insurance and bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. The U.S. Life Insurance segment offers long-term care insurance products and fixed annuity products in the United States. The Runoff segment covers non-strategic products, which primarily include variable annuity, variable life insurance, institutional, corporate-owned life insurance, and accident and health insurance products. This segment's institutional products include funding agreements and funding agreements backing notes. The company distributes its products and services primarily through appointed independent producers and employer groups. Genworth Financial, Inc. was founded in 1871 and is headquartered in Richmond, Virginia.

About SONY FINL HOLDI/ADR

Sony Financial Holdings Inc., together with its subsidiaries, provides financial services in Japan and internationally. The company operates in life insurance, non-life insurance, and banking businesses. Its insurance products include death-protection, medical, educational endowment, living benefit, and other insurance products; and non-life insurance products comprise automobile, medical, and cancer insurance products, as well as reinsurance services. The company's banking business provides Yen and foreign currency deposits, and mortgage loans, as well as investment trust, foreign currency margin trading, and other services; and credit card settlement services, as well as plans, develops, and operates nursing care homes. It provides its products through lifeplanner sales employees and independent agencies, as well as through Internet and telephone. The company was founded in 1979 and is headquartered in Tokyo, Japan. Sony Financial Holdings Inc. is a subsidiary of Sony Corporation.

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