Critical Review: Fidelis Insurance (NYSE:FIHL) and Tokio Marine (OTCMKTS:TKOMY)

Fidelis Insurance (NYSE:FIHL) and Tokio Marine (OTCMKTS:TKOMY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Fidelis Insurance and Tokio Marine’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelis Insurance	$3.60 billion	0.53	$2.13 billion	$4.12	3.94
Tokio Marine	$51.43 billion	1.39	$4.80 billion	$2.42	14.93

Tokio Marine has higher revenue and earnings than Fidelis Insurance. Fidelis Insurance is trading at a lower price-to-earnings ratio than Tokio Marine, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

82.0% of Fidelis Insurance shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Fidelis Insurance and Tokio Marine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	23.31%	17.97%	3.87%
Tokio Marine	9.30%	15.77%	2.38%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Fidelis Insurance and Tokio Marine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	0	4	4	0	2.50
Tokio Marine	0	0	0	0	N/A

Fidelis Insurance currently has a consensus price target of $18.94, suggesting a potential upside of 16.61%. Given Fidelis Insurance’s higher probable upside, equities research analysts clearly believe Fidelis Insurance is more favorable than Tokio Marine.

Dividends

Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Tokio Marine pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. Fidelis Insurance pays out 9.7% of its earnings in the form of a dividend. Tokio Marine pays out 24.8% 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. Fidelis Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Fidelis Insurance beats Tokio Marine on 9 of the 13 factors compared between the two stocks.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, together with its subsidiaries, provides insurance and reinsurance products in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, and other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.

About Tokio Marine

Tokio Marine Holdings, Inc., together with its subsidiaries, engages in non-life and life insurance, international insurance, and financial and general businesses worldwide. The company provides business, fire, Internet and mobile, rental housing, and natural catastrophe risk insurance services, as well as insurance for retail and corporate fields. It also provides property investment, insurance agency and risk consulting, human resource, in-home care and nursing care information, healthcare/medical, call center, and real estate-related services. Tokio Marine Holdings, Inc. serves individuals, small to medium sized non-profit organizations, schools, or churches. The company was formerly known as Millea Holdings, Inc. and changed its name to Tokio Marine Holdings, Inc. in 2008. Tokio Marine Holdings, Inc. was founded in 1879 and is headquartered in Tokyo, Japan.