Head-To-Head Analysis: Everest Re Group (NYSE:RE) & Tokio Marine (NYSE:TKOMY)

Everest Re Group (NYSE:RE) and Tokio Marine (OTCMKTS:TKOMY) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares Everest Re Group and Tokio Marine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everest Re Group 6.67% 6.37% 2.11%
Tokio Marine 5.00% 8.11% 1.32%

Insider and Institutional Ownership

91.8% of Everest Re Group shares are held by institutional investors. Comparatively, 0.1% of Tokio Marine shares are held by institutional investors. 1.4% of Everest Re Group 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.

Dividends

Everest Re Group pays an annual dividend of $5.60 per share and has a dividend yield of 2.2%. Tokio Marine pays an annual dividend of $1.34 per share and has a dividend yield of 2.5%. Everest Re Group pays out 120.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tokio Marine pays out 34.6% of its earnings in the form of a dividend. Everest Re Group has increased its dividend for 6 consecutive years. Tokio Marine is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Everest Re Group and Tokio Marine, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everest Re Group 0 6 1 0 2.14
Tokio Marine 0 0 0 0 N/A

Everest Re Group currently has a consensus price target of $254.57, indicating a potential downside of 2.25%. Given Everest Re Group’s higher probable upside, analysts plainly believe Everest Re Group is more favorable than Tokio Marine.

Valuation and Earnings

This table compares Everest Re Group and Tokio Marine’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everest Re Group $7.38 billion 1.44 $103.55 million $4.65 56.01
Tokio Marine $49.73 billion 0.78 $2.49 billion $3.87 14.11

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

Volatility and Risk

Everest Re Group has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Tokio Marine has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Summary

Everest Re Group beats Tokio Marine on 10 of the 16 factors compared between the two stocks.

Everest Re Group Company Profile

Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the United States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States, Canada, and Europe. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker's compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.

Tokio Marine Company Profile

Tokio Marine Holdings, Inc., together with its subsidiaries, engages in non-life and life insurance, international insurance, and financial and general businesses worldwide. The company provides business, fire, Internet and mobile, rental housing, and natural catastrophe risk insurance services, as well as insurance for retail and corporate fields. It also provides property investment, insurance agency and risk consulting, human resource, in-home care and nursing care information, healthcare/medical, call center, and real estate-related services. Tokio Marine Holdings, Inc. serves individuals, small to medium sized non-profit organizations, schools, or churches. The company was formerly known as Millea Holdings, Inc. and changed its name to Tokio Marine Holdings, Inc. in 2008. Tokio Marine Holdings, Inc. was founded in 1879 and is headquartered in Tokyo, Japan.

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