AEGON (NYSE:AEG) and SONY FINL HOLDI/ADR (OTCMKTS:SNYFY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Dividends

AEGON pays an annual dividend of $0.28 per share and has a dividend yield of 6.1%. SONY FINL HOLDI/ADR pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. AEGON pays out 31.1% of its earnings in the form of a dividend. SONY FINL HOLDI/ADR pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AEGON is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

6.2% of AEGON shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for AEGON and SONY FINL HOLDI/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AEGON 1 2 3 0 2.33
SONY FINL HOLDI/ADR 0 0 0 0 N/A

AEGON presently has a consensus target price of $5.00, suggesting a potential upside of 8.23%. Given AEGON’s higher possible upside, research analysts plainly believe AEGON is more favorable than SONY FINL HOLDI/ADR.

Risk & Volatility

AEGON has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, SONY FINL HOLDI/ADR has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares AEGON and SONY FINL HOLDI/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AEGON $38.94 billion 0.32 $838.51 million $0.90 5.13
SONY FINL HOLDI/ADR $14.79 billion 0.63 $558.67 million $1.30 16.58

AEGON has higher revenue and earnings than SONY FINL HOLDI/ADR. AEGON is trading at a lower price-to-earnings ratio than SONY FINL HOLDI/ADR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AEGON and SONY FINL HOLDI/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AEGON N/A N/A N/A
SONY FINL HOLDI/ADR 4.06% 10.35% 0.50%

Summary

AEGON beats SONY FINL HOLDI/ADR on 8 of the 14 factors compared between the two stocks.

AEGON Company Profile

Aegon N.V. provides insurance, pensions, and asset management services worldwide. It offers life, accident, and health insurance; property and casualty insurance; home and car insurance; individual investment accounts; annuities; retirement plan services; stable value solutions; retail and institutional investment management solutions; savings products; group pensions; mortgage loans; and bank accounts. The company markets its products through brokers, independent agents, employee benefit consultants, bancassurance channels, self-service/online centers, and call/advice centers. Aegon N.V. was founded in 1983 and is headquartered in The Hague, the Netherlands.

SONY FINL HOLDI/ADR Company Profile

Sony Financial Holdings Inc., together with its subsidiaries, provides financial services in Japan and internationally. The company operates in life insurance, non-life insurance, and banking businesses. Its insurance products include death-protection, medical, educational endowment, living benefit, and other insurance products; and non-life insurance products comprise automobile, medical, and cancer insurance products, as well as reinsurance services. The company's banking business provides Yen and foreign currency deposits, and mortgage loans, as well as investment trust, foreign currency margin trading, and other services; and credit card settlement services, as well as plans, develops, and operates nursing care homes. It provides its products through lifeplanner sales employees and independent agencies, as well as through Internet and telephone. The company was founded in 1979 and is headquartered in Tokyo, Japan. Sony Financial Holdings Inc. is a subsidiary of Sony Corporation.

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