Reviewing Sompo (OTCMKTS:SMPNY) & BR Malls Participações (OTCMKTS:BRMSY)

Sompo (OTCMKTS:SMPNY) and BR Malls Participações (OTCMKTS:BRMSY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sompo and BR Malls Participações, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sompo	0	0	0	0	N/A
BR Malls Participações	0	0	0	0	N/A

Dividends

Sompo pays an annual dividend of $0.25 per share and has a dividend yield of 2.6%. BR Malls Participações pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Sompo pays out 18.9% of its earnings in the form of a dividend. BR Malls Participações pays out 25.0% 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. Sompo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Sompo and BR Malls Participações’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sompo	7.82%	16.50%	2.64%
BR Malls Participações	N/A	N/A	N/A

Earnings & Valuation

This table compares Sompo and BR Malls Participações’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sompo	$34.10 billion	0.57	$674.56 million	$1.32	7.37
BR Malls Participações	$228.53 million	6.52	$34.65 million	$0.08	45.01

Sompo has higher revenue and earnings than BR Malls Participações. Sompo is trading at a lower price-to-earnings ratio than BR Malls Participações, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Sompo has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, BR Malls Participações has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Summary

Sompo beats BR Malls Participações on 8 of the 10 factors compared between the two stocks.

About Sompo

Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care & Seniors Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and seniors services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; and health support services comprising health guidance and employee assistance programs. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.

About BR Malls Participações

BR Malls Participações S.A. operates and manages shopping malls in Brazil. It also promotes and manages real estate enterprises; manages parking lot operations; and offers digital solutions to support shopping malls and retail companies. The company was founded in 1949 and is headquartered in Rio de Janeiro, Brazil. As of March 31, 2022, BR Malls Participações S.A. operates as a subsidiary of Aliansce Sonae Shopping Centers S.A.