Assurant (NYSE: AIZ) and Brighthouse Financial (NASDAQ:BHF) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Assurant pays an annual dividend of $2.12 per share and has a dividend yield of 2.2%. Brighthouse Financial does not pay a dividend. Assurant pays out 27.9% of its earnings in the form of a dividend. Assurant has raised its dividend for 13 consecutive years.
Valuation and Earnings
This table compares Assurant and Brighthouse Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Assurant||$6.74 billion||0.76||$864.39 million||$7.60||12.54|
Assurant has higher revenue and earnings than Brighthouse Financial.
Institutional and Insider Ownership
90.8% of Assurant shares are held by institutional investors. 0.8% of Assurant shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Assurant and Brighthouse Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Assurant and Brighthouse Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Assurant presently has a consensus target price of $101.00, indicating a potential upside of 5.96%. Brighthouse Financial has a consensus target price of $67.44, indicating a potential upside of 11.17%. Given Brighthouse Financial’s higher probable upside, analysts plainly believe Brighthouse Financial is more favorable than Assurant.
Assurant beats Brighthouse Financial on 10 of the 12 factors compared between the two stocks.
Assurant Company Profile
Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.
Brighthouse Financial Company Profile
Brighthouse Financial, Inc. is a provider of life insurance and annuity products in the United States. The Company offers a range of products and services, which include variable, fixed, index-linked and income annuities, as well as variable, universal, term and whole life products. These products and services are marketed through various third party retail distribution channels in the United States. Fixed income annuities provide a guaranteed monthly income for a specified period of years and/or for the life of the annuitant. The Company operating segments include Annuities, Life and Run-off.
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