Aviva Plc (NYSE: AV) and China Life Insurance Company Limited (NYSE:LFC) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Dividends
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 an annual dividend of $0.14 per share and has a dividend yield of 0.9%. China Life Insurance Company Limited pays out 27.5% of its earnings in the form of a dividend. Aviva Plc has raised its dividend for 3 consecutive years and China Life Insurance Company Limited has raised its dividend for 3 consecutive years.
Risk and Volatility
Aviva Plc has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, China Life Insurance Company Limited has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Institutional & Insider Ownership
0.8% of Aviva Plc shares are owned by institutional investors. Comparatively, 0.2% of China Life Insurance Company Limited shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Aviva Plc and China Life Insurance Company Limited’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aviva Plc | N/A | N/A | N/A |
| China Life Insurance Company Limited | 3.40% | 6.37% | 0.73% |
Earnings & Valuation
This table compares Aviva Plc and China Life Insurance Company Limited’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Aviva Plc | N/A | N/A | N/A | N/A | N/A |
| China Life Insurance Company Limited | $89.10 billion | 0.26 | $5.33 billion | $0.51 | 30.00 |
China Life Insurance Company Limited has higher revenue and earnings than Aviva Plc.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Aviva Plc and China Life Insurance Company Limited, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aviva Plc | 0 | 2 | 1 | 0 | 2.33 |
| China Life Insurance Company Limited | 0 | 4 | 2 | 1 | 2.57 |
Summary
China Life Insurance Company Limited beats Aviva Plc on 8 of the 11 factors compared between the two stocks.
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.
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.
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