Kansas City Life Insurance (OTCMKTS:KCLI) and China Pacific Insurance (Group) (OTCMKTS:CHPXF) Financial Analysis

China Pacific Insurance (Group) (OTCMKTS:CHPXF) and Kansas City Life Insurance (OTCMKTS:KCLI) are both financial services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Dividends

China Pacific Insurance (Group) pays an annual dividend of $0.36 per share and has a dividend yield of 15.1%. Kansas City Life Insurance pays an annual dividend of $0.56 per share and has a dividend yield of 1.6%. China Pacific Insurance (Group) pays out 32.2% of its earnings in the form of a dividend. Kansas City Life Insurance pays out 9.1% 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.

Profitability

This table compares China Pacific Insurance (Group) and Kansas City Life Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Pacific Insurance (Group)	N/A	N/A	N/A
Kansas City Life Insurance	10.73%	10.79%	1.20%

Earnings and Valuation

This table compares China Pacific Insurance (Group) and Kansas City Life Insurance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Pacific Insurance (Group)	N/A	N/A	N/A	$1.12	2.13
Kansas City Life Insurance	$558.92 million	0.62	$54.92 million	$6.16	5.76

Kansas City Life Insurance has higher revenue and earnings than China Pacific Insurance (Group). China Pacific Insurance (Group) is trading at a lower price-to-earnings ratio than Kansas City Life Insurance, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for China Pacific Insurance (Group) and Kansas City Life Insurance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Pacific Insurance (Group)	0	0	0	0	N/A
Kansas City Life Insurance	0	0	0	0	N/A

Insider & Institutional Ownership

10.0% of China Pacific Insurance (Group) shares are owned by institutional investors. Comparatively, 0.1% of Kansas City Life Insurance shares are owned by institutional investors. 63.1% of Kansas City Life Insurance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Kansas City Life Insurance beats China Pacific Insurance (Group) on 8 of the 10 factors compared between the two stocks.

About China Pacific Insurance (Group)

China Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, provides insurance products to individual and institutional customers in the People's Republic of China. It operates through Life and Health Insurance, Property and Casualty Insurance, and Other Businesses segments. The company offers life, health, automobile, liability, agricultural, property, accident, and engineering insurance products; pension and annuity insurance products; investments with insurance funds, etc.; and reinsurance products. It also provides real estate and property management, consulting, medical and health consulting, insurance agency, fund management, seniors and disabled care, elderly, nursing, real estate development and operation, technical consulting, technical, cloud computing, bid data, business, hospital management, and medical services; and senior living property investment, construction, and management services. In addition, the company offers investment management, pension fund and insurance asset management, private equity investment fund management, and non-residential real estate leasing services. It sells its products directly, as well as through agents, bancassurance, telemarketing, and internet sales. China Pacific Insurance (Group) Co., Ltd. was founded in 1991 and is headquartered in Shanghai, the People's Republic of China.

About Kansas City Life Insurance

Kansas City Life Insurance Company provides insurance products and services in states and the District of Columbia. It operates through three segments: Individual Insurance, Group Insurance, and Old American. The Individual Insurance segment consists of individual insurance products for Kansas City life, Grange life, and the assumed reinsurance transactions. The Group Insurance segment sells group life, dental, vision, disability, accident, and critical illness products. The Old American segment consists of individual insurance products designed for final expense products. Kansas City Life Insurance Company was incorporated in 1895 and is based in Kansas City, Missouri.