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Reinsurance Group of America (NYSE:RGA – Get Rating) and Swiss Re (OTCMKTS:SSREF – Get Rating) are both financial services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.
Valuation and Earnings
This table compares Reinsurance Group of America and Swiss Re’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reinsurance Group of America | $16.33 billion | 0.57 | $623.00 million | $13.85 | 10.07 |
| Swiss Re | N/A | N/A | N/A | $11.77 | 8.31 |
Reinsurance Group of America has higher revenue and earnings than Swiss Re. Swiss Re is trading at a lower price-to-earnings ratio than Reinsurance Group of America, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Reinsurance Group of America and Swiss Re’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reinsurance Group of America | 5.66% | 23.94% | 1.52% |
| Swiss Re | N/A | N/A | N/A |
Dividends
Reinsurance Group of America pays an annual dividend of $3.20 per share and has a dividend yield of 2.3%. Swiss Re pays an annual dividend of $4.36 per share and has a dividend yield of 4.5%. Reinsurance Group of America pays out 23.1% of its earnings in the form of a dividend. Swiss Re pays out 37.0% 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. Reinsurance Group of America has increased its dividend for 12 consecutive years.
Institutional and Insider Ownership
93.6% of Reinsurance Group of America shares are owned by institutional investors. Comparatively, 24.3% of Swiss Re shares are owned by institutional investors. 1.6% of Reinsurance Group of America shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Reinsurance Group of America and Swiss Re, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reinsurance Group of America | 0 | 4 | 5 | 1 | 2.70 |
| Swiss Re | 0 | 0 | 0 | 0 | N/A |
Reinsurance Group of America currently has a consensus price target of $161.55, indicating a potential upside of 15.88%. Given Reinsurance Group of America’s higher probable upside, equities research analysts plainly believe Reinsurance Group of America is more favorable than Swiss Re.
Summary
Reinsurance Group of America beats Swiss Re on 13 of the 14 factors compared between the two stocks.
About Reinsurance Group of America
(Get Rating)
Reinsurance Group of America, Incorporated engages in reinsurance business. The company offers individual and group life and health insurance products, such as term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products; asset-intensive and financial reinsurance products; and other capital motivated solutions. It also provides reinsurance for mortality, morbidity, lapse, and investment-related risk associated with products; and reinsurance for investment-related risks. In addition, the company develops and markets technology solutions; and provides consulting and outsourcing solutions for the insurance and reinsurance industries. It serves life insurance companies in the United States, Latin America, Canada, Europe, the Middle East, Africa, Australia, and the Asia Pacific. Reinsurance Group of America, Incorporated was founded in 1973 and is headquartered in Chesterfield, Missouri.
About Swiss Re
(Get Rating)
Swiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, other insurance-based forms of risk transfer, and other insurance-related services worldwide. The company operates through three segments: Property & Casualty Reinsurance, Life & Health Reinsurance, and Corporate Solutions. The Property & Casualty Reinsurance segment underwrites property reinsurance, including property, credit and surety, engineering, aviation, marine, agriculture, retakaful, and facultative reinsurance solutions; and casualty reinsurance, such as liability, motor, worker’s compensation, personal accident, management and professional liability, cyber, and facultative reinsurance solutions. The Life & Health Reinsurance segment underwrites life and health insurance products. The Corporate Solutions segment offers standard risk transfer covers and multi-line programs to customized solutions. It serves stock and mutual insurance companies, public sector and governmental entities, mid-sized and large corporations, and individuals. Swiss Re AG was founded in 1863 and is headquartered in Zurich, Switzerland.
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