Financial Review: Allianz (OTCMKTS:ALIZY) and Allstate (NYSE:ALL)

Allstate (NYSE:ALL) and Allianz (OTCMKTS:ALIZY) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Allstate and Allianz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allstate	3	10	7	2	2.36
Allianz	0	2	2	1	2.80

Allstate presently has a consensus target price of $272.00, indicating a potential upside of 6.56%. Given Allstate’s higher possible upside, equities analysts clearly believe Allstate is more favorable than Allianz.

Valuation and Earnings

This table compares Allstate and Allianz”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allstate	$69.28 billion	0.93	$10.28 billion	$44.16	5.78
Allianz	$211.45 billion	0.90	$12.19 billion	$3.55	14.06

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

Profitability

This table compares Allstate and Allianz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allstate	16.57%	38.37%	9.29%
Allianz	6.31%	18.33%	1.16%

Institutional and Insider Ownership

76.5% of Allstate shares are owned by institutional investors. Comparatively, 0.0% of Allianz shares are owned by institutional investors. 1.5% of Allstate shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Allstate pays an annual dividend of $4.32 per share and has a dividend yield of 1.7%. Allianz pays an annual dividend of $1.40 per share and has a dividend yield of 2.8%. Allstate pays out 9.8% of its earnings in the form of a dividend. Allianz pays out 39.4% 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. Allstate has increased its dividend for 15 consecutive years.

Risk and Volatility

Allstate has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, Allianz has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Summary

Allstate beats Allianz on 12 of the 18 factors compared between the two stocks.

About Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

About Allianz

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company’s Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company’s Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.