Financial Analysis: Prudential Financial (NYSE:PRU) and M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY)

Prudential Financial (NYSE:PRU) and M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

56.8% of Prudential Financial shares are owned by institutional investors. Comparatively, 0.2% of M�nchener R�ckversicherungs-Gesellschaft shares are owned by institutional investors. 0.3% of Prudential Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Prudential Financial has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, M�nchener R�ckversicherungs-Gesellschaft has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Dividends

Prudential Financial pays an annual dividend of $5.40 per share and has a dividend yield of 5.0%. M�nchener R�ckversicherungs-Gesellschaft pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. Prudential Financial pays out 119.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. M�nchener R�ckversicherungs-Gesellschaft pays out 12.0% of its earnings in the form of a dividend. Prudential Financial has increased its dividend for 2 consecutive years. Prudential Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Prudential Financial and M�nchener R�ckversicherungs-Gesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prudential Financial	2.75%	15.80%	0.64%
M�nchener R�ckversicherungs-Gesellschaft	8.37%	15.76%	1.80%

Analyst Ratings

This is a summary of current ratings and target prices for Prudential Financial and M�nchener R�ckversicherungs-Gesellschaft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prudential Financial	1	9	1	0	2.00
M�nchener R�ckversicherungs-Gesellschaft	0	5	0	1	2.33

Prudential Financial currently has a consensus price target of $122.0833, indicating a potential upside of 14.03%. Given Prudential Financial’s higher probable upside, equities analysts clearly believe Prudential Financial is more favorable than M�nchener R�ckversicherungs-Gesellschaft.

Valuation & Earnings

This table compares Prudential Financial and M�nchener R�ckversicherungs-Gesellschaft”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prudential Financial	$68.05 billion	0.55	$2.73 billion	$4.51	23.74
M�nchener R�ckversicherungs-Gesellschaft	$65.83 billion	1.30	$6.15 billion	$2.17	6.06

M�nchener R�ckversicherungs-Gesellschaft has lower revenue, but higher earnings than Prudential Financial. M�nchener R�ckversicherungs-Gesellschaft is trading at a lower price-to-earnings ratio than Prudential Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Prudential Financial beats M�nchener R�ckversicherungs-Gesellschaft on 11 of the 18 factors compared between the two stocks.

About Prudential Financial

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments. The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. The Retirement Strategies segment provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; develops and distributes individual variable and fixed annuity products. The Group Insurance segment offers various group life, and long-term and short-term group disability, as well as group corporate-, bank-, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans; sells accidental death and dismemberment, and other supplemental health solutions; and plan administration services in connection with its insurance coverages. The Individual Life segment develops and distributes variable life, universal life, and term life insurance products. The International Businesses segment develops and distributes life insurance, retirement products, investment products, and certain accident and health products; and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.

About M�nchener R�ckversicherungs-Gesellschaft

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. It also offers life and health reinsurance solutions, such as digital underwriting and advanced analytics solutions, health insurance management system, financial market risks, financing, portfolio risk management, digitalized investment-linked solution, MIRA digital suite, MIRA POS, MIRApply insured and physician, claims risk adjustment, CLARA plus, data analytics, underwriting and claims, medical research, capital management, and health market. The company also provides property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, property insurance, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, and cert2go, as well as consulting services for reinsurance, business advisory, portfolio performance and management, claims management, commercial motor, telematics, and electric vehicles. In addition, the company provides solutions for industry clients, such as IoT cover, earnings quality insurance protection, captive insurance and risk transfer, liability, weather risks, space and satellite insurance, solar and biomass insurance, wind insurance, digital asset, mining risks cover, construction projects covers and services, aviation insurance, power and utilities, industrial cyber insurance, risk suite, location risk intelligence, digital risks, PV warranty insurance, parametric, Insure AI, e-mobility, circular economy, liquidation damage cover, and natural catastrophes solutions. Further, it offers life, property-casualty, health, legal protection, and travel insurance products under the ERGO brand name; and insurance solutions for agriculture, captive, epidemic, cyber, and renewable energy. The company was founded in 1880 and is based in Munich, Germany.