Hiscox (OTCMKTS:HCXLF – Get Rating) and Hannover Rück (OTC:HVRRF – Get Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.
Profitability
This table compares Hiscox and Hannover Rück's net margins, return on equity and return on assets.
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| Net Margins | Return on Equity | Return on Assets |
Hiscox | N/A | N/A | N/A |
Hannover Rück | N/A | N/A | N/A |
Valuation and Earnings
This table compares Hiscox and Hannover Rück's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
Hiscox | N/A | N/A | N/A | $0.64 | 21.03 |
Hannover Rück | N/A | N/A | N/A | $7.97 | 24.62 |
Hiscox is trading at a lower price-to-earnings ratio than Hannover Rück, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
59.1% of Hiscox shares are owned by institutional investors. Comparatively, 20.0% of Hannover Rück shares are owned by institutional investors. 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.
Dividends
Hiscox pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Hannover Rück pays an annual dividend of $2.25 per share and has a dividend yield of 1.1%. Hiscox pays out 12.3% of its earnings in the form of a dividend. Hannover Rück pays out 28.2% 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.
Analyst Ratings
This is a summary of current ratings and price targets for Hiscox and Hannover Rück, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
Hiscox | 0 | 4 | 1 | 0 | 2.20 |
Hannover Rück | 2 | 1 | 2 | 0 | 2.00 |
Hannover Rück has a consensus price target of $164.75, indicating a potential downside of 16.01%. Given Hannover Rück's higher probable upside, analysts clearly believe Hannover Rück is more favorable than Hiscox.
Summary
Hannover Rück beats Hiscox on 5 of the 8 factors compared between the two stocks.
About Hiscox
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Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, Europe, the United States, and internationally. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It provides commercial insurance for small-and medium-sized businesses, personal lines cover, including high-value household, fine art, luxury motor, and classic car through brokers, partners and direct-to-consumer using both traditional and digital trading models. The company also offers property insurance; marine and energy insurance; aviation insurance; casualty insurance; specialty insurance; kidnap and ransom insurance; and other specialty insurance, such as contingency, terrorism, personal accident, and product recall. In addition, it provides healthcare and casualty reinsurance services, as well as investment services. Hiscox Ltd was founded in 1901 and is based in Pembroke, Bermuda.
About Hannover Rück
(Get Rating)
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 company offers property, casualty, facultative, catastrophe XL, structured reinsurance, and insurance-linked securities. It also provides risk solutions for agricultural, livestock, and bloodstock businesses; aviation and space business; and marine and offshore energy business, as well as credit, surety, and political risks reinsurance products. In addition, the company offers group and individual credit life, enhanced annuities, group life and health, and Takaful reinsurance products; and risk solutions in the areas of critical illness, disability, health, longevity, long term care, mortality, and morbidity. Further, it provides 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 headquartered in Hanover, Germany. Hannover Rück SE is a subsidiary of Talanx AG.
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