Swiss Re (OTCMKTS: SSREY) and Prudential Public (NYSE:PUK) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Swiss Re pays an annual dividend of $1.04 per share and has a dividend yield of 4.7%. Prudential Public pays an annual dividend of $1.75 per share and has a dividend yield of 3.6%. Swiss Re pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prudential Public pays out 46.8% of its earnings in the form of a dividend.
This table compares Swiss Re and Prudential Public’s net margins, return on equity and return on assets.
Insider & Institutional Ownership
0.1% of Swiss Re shares are held by institutional investors. Comparatively, 1.6% of Prudential Public shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Swiss Re and Prudential Public, as provided by MarketBeat.com.
Risk and Volatility
Swiss Re has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Prudential Public has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
Earnings and Valuation
This table compares Swiss Re and Prudential Public’s revenue, earnings per share and valuation.
Prudential Public has higher revenue and earnings than Swiss Re. Prudential Public is trading at a lower price-to-earnings ratio than Swiss Re, indicating that it is currently the more affordable of the two stocks.
Prudential Public beats Swiss Re on 6 of the 11 factors compared between the two stocks.
About Swiss Re
Swiss Re Ltd, together with its subsidiaries, provides wholesale reinsurance, insurance, and other insurance-based forms of risk transfer worldwide. The company operates through four segments: Property & Casualty Reinsurance, Life & Health Reinsurance, Corporate Solutions, and Life Capital. It underwrites casualty, property and specialty, agriculture, aviation, engineering, marine, life and health, retakaful, solvency II, and facultative reinsurance products, as well as trade credit, surety, and political risk reinsurance; structured reinsurance solutions; and insurance-linked securities. The company also offers customized products and standard insurance covers; and manages closed and open life and health insurance books. The company serves insurance companies, mid-to-large-sized corporations, and public sector clients. Swiss Re Ltd was founded in 1863 and is headquartered in Zurich, Switzerland.
About Prudential Public
Prudential plc, together with its subsidiaries, provides a range of retail financial products and services, and asset management services in Asia, the United States, the United Kingdom, Europe, and Africa. The company offers health and protection, as well as other life insurance products, including participating business and mutual funds; and personal lines property and casualty insurance, group insurance, and institutional fund management services. It also provides fixed annuities, such as fixed interest rate, and fixed index and immediate annuities; variable annuities; and institutional products comprising guaranteed investment contracts and funding agreements. In addition, the company offers savings and investment solutions; and unit-linked and collective investments, as well as corporate pension services that include auto-enrolment services. Further, it provides long-term products, which comprise pension products and annuities; investment bonds; with-profits savings and protection products; level, fixed increase, and RPI annuities; onshore and offshore bonds; and pension and flexi-income drawdown products, including corporate, individual pension, and flexi-access drawdown products. The company offers its products and services through an agency sales force together with various banks, brokers, local partners, independent insurance agents, independent broker-dealers, regional broker-dealers, warehouses, credit unions, and other financial institutions. Prudential plc was founded in 1848 and is headquartered in London, the United Kingdom.