MGIC Investment (NYSE:MTG) vs. Aegon (NYSE:AEG) Head to Head Analysis

MGIC Investment (NYSE:MTG) and Aegon (NYSE:AEG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares MGIC Investment and Aegon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGIC Investment	62.58%	14.73%	11.62%
Aegon	N/A	N/A	N/A

Valuation & Earnings

This table compares MGIC Investment and Aegon”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGIC Investment	$1.21 billion	5.14	$762.99 million	$3.05	8.83
Aegon	$10.65 billion	1.38	$744.48 million	$0.96	7.66

MGIC Investment has higher earnings, but lower revenue than Aegon. Aegon is trading at a lower price-to-earnings ratio than MGIC Investment, indicating that it is currently the more affordable of the two stocks.

Dividends

MGIC Investment pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Aegon pays an annual dividend of $0.38 per share and has a dividend yield of 5.2%. MGIC Investment pays out 19.7% of its earnings in the form of a dividend. Aegon pays out 39.6% 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. MGIC Investment has increased its dividend for 6 consecutive years.

Risk and Volatility

MGIC Investment has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Aegon has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

95.6% of MGIC Investment shares are held by institutional investors. Comparatively, 4.3% of Aegon shares are held by institutional investors. 1.4% of MGIC Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for MGIC Investment and Aegon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGIC Investment	2	4	0	1	2.00
Aegon	0	0	4	2	3.33

MGIC Investment currently has a consensus target price of $26.83, suggesting a potential downside of 0.38%. Given MGIC Investment’s higher probable upside, research analysts clearly believe MGIC Investment is more favorable than Aegon.

Summary

MGIC Investment beats Aegon on 12 of the 18 factors compared between the two stocks.

About MGIC Investment

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin.

About Aegon

Aegon Ltd. provides insurance, pensions, retirement, and asset management services in the United States, the Netherlands, the United Kingdom, and internationally. The company offers life, accident, property and casualty, and health insurance; annuities, retirement plans, mutual funds, and stable value solutions; residential mortgage and digital baking services; and retail and institutional investment management solutions and retirement savings vehicles and strategies. It offers its products under the Aegon and Transamerica brands. Aegon Ltd. was founded in 1844 and is headquartered in The Hague, the Netherlands.