Hiscox (OTCMKTS:HCXLF – Get Rating) and Hannover Rück (OTC:HVRRF – Get Rating) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Insider and Institutional Ownership

59.1% of Hiscox shares are held by institutional investors. Comparatively, 20.0% of Hannover Rück shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hiscox and Hannover Rück, as reported by MarketBeat.

Hannover Rück has a consensus target price 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.

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.

Earnings and Valuation

This table compares Hiscox and Hannover Rück's revenue, earnings per share and valuation.

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.

Profitability

This table compares Hiscox and Hannover Rück's net margins, return on equity and return on assets.

Summary

Hannover Rück beats Hiscox on 5 of the 8 factors compared between the two stocks.

About Hiscox

(Get Rating)

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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