AEGON (NYSE:AEG) and HANNOVER RUECK/S (OTCMKTS:HVRRY) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Earnings and Valuation
This table compares AEGON and HANNOVER RUECK/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AEGON||$37.24 billion||0.33||$2.79 billion||$0.84||7.26|
|HANNOVER RUECK/S||$19.66 billion||0.86||$1.08 billion||$4.49||15.53|
Institutional & Insider Ownership
8.8% of AEGON shares are held by institutional investors. Comparatively, 0.1% of HANNOVER RUECK/S shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares AEGON and HANNOVER RUECK/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for AEGON and HANNOVER RUECK/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AEGON pays an annual dividend of $0.28 per share and has a dividend yield of 4.6%. HANNOVER RUECK/S pays an annual dividend of $1.51 per share and has a dividend yield of 2.2%. AEGON pays out 33.3% of its earnings in the form of a dividend. HANNOVER RUECK/S pays out 33.6% 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. AEGON has raised its dividend for 2 consecutive years. AEGON is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
AEGON has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, HANNOVER RUECK/S has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Aegon N.V. provides life insurance, pensions, and asset management services. It offers life and protection products, such as traditional and universal life insurance products, as well as employer, endowment, term, and whole life insurance products; and supplemental health, accidental death and dismemberment insurance, critical illness, cancer treatment, credit/disability, income protection, travel, and long-term care insurance products. The company also provides variable and fixed annuities, retirement plans, mutual funds, and stable value solutions; individual and group pensions sponsored by or obtained through an employer; and mortgages, as well as banking products, including saving deposits. In addition, it offers general insurance products consisting of automotive, liability, disability, household insurance, and fire protection, as well as financing and reinsurance services. The company markets its products through brokerage, partner, institutional/worksite, and wholesale distribution channels. It has operations in the United States, Mexico, Brazil, the Netherlands, the United Kingdom, Central and Eastern Europe, Spain, Portugal, and Asia. The company was founded in 1983 and is headquartered in The Hague, the Netherlands.
About HANNOVER RUECK/S
Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services worldwide. It operates through Property & Casualty Reinsurance, and Life & Health Reinsurance segments. The Property & Casualty Reinsurance segment offers specialty lines comprising marine, aviation, facultative, credit, surety, and political risks reinsurance products; and treaty, catastrophe XL, and structured reinsurance, as well as insurance-linked securities. This segment also provides risk solutions for casualty and property, as well as for agricultural, livestock, and bloodstock businesses; aviation and space business; and marine and offshore energy business. The Life & Health Reinsurance segment offers, enhanced annuities, group life and health, guaranteed simplified issue, 60+, and Sharia-compliant Takaful reinsurance products, as well as micro insurance products. This segment also provides risk solutions in the areas of critical illness, disability, health, longevity, long term care, and mortality. In addition, it offers various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and divestiture of non-core businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. The company was founded in 1966 and is based in Hanover, Germany. Hannover Rück SE is a subsidiary of Talanx AG.
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