Zurich Insurance Group (OTCMKTS: ZURVY) and MBIA (NYSE:MBI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

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0.3% of Zurich Insurance Group shares are owned by institutional investors. 4.1% of MBIA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Zurich Insurance Group and MBIA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zurich Insurance Group 1 3 3 0 2.29
MBIA 0 1 2 0 2.67

MBIA has a consensus target price of $14.50, indicating a potential upside of 58.99%. Given MBIA’s stronger consensus rating and higher probable upside, analysts clearly believe MBIA is more favorable than Zurich Insurance Group.

Risk & Volatility

Zurich Insurance Group has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, MBIA has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500.

Valuation & Earnings

This table compares Zurich Insurance Group and MBIA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zurich Insurance Group $63.96 billion 0.75 $3.00 billion $2.15 14.87
MBIA $433.00 million 1.87 -$1.61 billion ($12.89) -0.71

Zurich Insurance Group has higher revenue and earnings than MBIA. MBIA is trading at a lower price-to-earnings ratio than Zurich Insurance Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zurich Insurance Group and MBIA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zurich Insurance Group N/A N/A N/A
MBIA -370.67% -19.69% -4.16%

Dividends

Zurich Insurance Group pays an annual dividend of $0.94 per share and has a dividend yield of 2.9%. MBIA does not pay a dividend. Zurich Insurance Group pays out 43.7% of its earnings in the form of a dividend.

Summary

Zurich Insurance Group beats MBIA on 10 of the 16 factors compared between the two stocks.

Zurich Insurance Group Company Profile

Zurich Insurance Group AG is a holding company. The Company and its subsidiaries provide insurance products and related services. Its segments include General Insurance, Global Life, Farmers, Other Operating Businesses and Non-Core Businesses. The General Insurance segment provides a range of motor, home and commercial products and services for individuals, as well as small and large businesses. The Global Life segment is engaged in providing unit-linked, protection and corporate propositions through global distribution and proposition pillars. The Farmers segment, through Farmers Group, Inc. and its subsidiaries, provides certain non-claims administrative and management services to the Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange, and their subsidiaries and affiliates. The Other Operating Businesses segment includes the Company’s Holding and Financing activities. The Non-Core Businesses segment includes its insurance and reinsurance businesses.

MBIA Company Profile

MBIA Inc. is a holding company. The Company, through its subsidiaries, is engaged in the financial guarantee insurance businesses in the industry. The Company manages its business within three segments: United States (U.S.) public finance insurance; corporate, and international and structured finance insurance. The U.S. public finance insurance business is primarily operated through National Public Finance Guarantee Corporation. The corporate segment consists of general corporate activities, including providing general support services, including management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, to other operating businesses, and asset and capital management. The international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries.

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