Assurant (AIZ) vs. American National Insurance (ANAT) Critical Review
Assurant (NYSE: AIZ) and American National Insurance (NASDAQ:ANAT) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Earnings and Valuation
This table compares Assurant and American National Insurance’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Assurant||$6.74 billion||0.76||$864.39 million||$7.60||12.44|
|American National Insurance||$3.28 billion||0.94||$260.52 million||$7.23||15.88|
Assurant has higher revenue and earnings than American National Insurance. Assurant is trading at a lower price-to-earnings ratio than American National Insurance, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Assurant has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, American National Insurance has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
Assurant pays an annual dividend of $2.12 per share and has a dividend yield of 2.2%. American National Insurance pays an annual dividend of $3.28 per share and has a dividend yield of 2.9%. Assurant pays out 27.9% of its earnings in the form of a dividend. American National Insurance pays out 45.4% 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. American National Insurance has raised its dividend for 13 consecutive years. American National Insurance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
90.8% of Assurant shares are held by institutional investors. Comparatively, 65.2% of American National Insurance shares are held by institutional investors. 0.8% of Assurant shares are held by insiders. Comparatively, 23.5% of American National Insurance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for Assurant and American National Insurance, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American National Insurance||0||0||0||0||N/A|
Assurant currently has a consensus target price of $98.33, suggesting a potential upside of 4.03%. Given Assurant’s higher possible upside, research analysts clearly believe Assurant is more favorable than American National Insurance.
This table compares Assurant and American National Insurance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American National Insurance||5.95%||2.61%||0.50%|
Assurant beats American National Insurance on 10 of the 16 factors compared between the two stocks.
Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.
About American National Insurance
American National Insurance Company is engaged in life insurance, annuities, and property and casualty insurance. The Company also offers limited health insurance. Its family of companies includes six life insurance companies, eight property and casualty insurance companies, and various non-insurance subsidiaries. Its business segments include Life, which offers products, such as Whole Life, Term Life, Universal Life, Variable Universal Life and Credit Life Insurance; Annuity, including products, such as Deferred Annuity, Single Premium Immediate Annuity and Variable Annuity; Health, including, such as Medicare Supplement, Supplemental Insurance, Stop-Loss, Credit Disability and Medical Expense; Property and Casualty, which offers products, such as Personal Lines, Commercial Lines and Credit-Related Property Insurance products, and Corporate and Other, which consists of its invested assets that are not used to support insurance activities, and non-insurance subsidiaries.
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