Analyzing Hannover Ruck (OTCMKTS:HVRRY) and Everest Group (NYSE:EG)

Hannover Ruck (OTCMKTS:HVRRY) and Everest Group (NYSE:EG) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares Hannover Ruck and Everest Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hannover Ruck	9.33%	18.00%	3.48%
Everest Group	11.41%	13.63%	3.37%

Risk & Volatility

Hannover Ruck has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Everest Group has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hannover Ruck and Everest Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hannover Ruck	$30.30 billion	1.22	$2.99 billion	$4.04	12.69
Everest Group	$17.50 billion	0.86	$1.59 billion	$47.29	8.25

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

Insider and Institutional Ownership

0.0% of Hannover Ruck shares are held by institutional investors. Comparatively, 92.6% of Everest Group shares are held by institutional investors. 0.7% of Everest Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Hannover Ruck pays an annual dividend of $1.76 per share and has a dividend yield of 3.4%. Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.0%. Hannover Ruck pays out 43.6% of its earnings in the form of a dividend. Everest Group pays out 16.9% 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. Everest Group has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hannover Ruck and Everest Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hannover Ruck	0	1	0	1	3.00
Everest Group	0	11	5	0	2.31

Everest Group has a consensus target price of $407.94, suggesting a potential upside of 4.53%. Given Everest Group’s higher possible upside, analysts clearly believe Everest Group is more favorable than Hannover Ruck.

About Hannover Ruck

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services in Germany, the United Kingdom, France, Europe, the United States, Asia, Australia, Africa, and internationally. It operates through Property & Casualty Reinsurance; and Life & Health Reinsurance segments. The company provides property and casualty reinsurance solutions for agricultural, livestock, and bloodstock; aviation and space; catastrophe XL; credit, surety, and political risks; facultative; and marine and offshore energy businesses, as well as insurance-linked securities and structured reinsurance. It offers risk solutions in the areas of critical illness, disability, health, longevity, long term care, and mortality. In addition, the company offers group life, retirement, lifestyle, credit life, and Takaful reinsurance products. Further, the company provides various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and reinsurance and solvency II businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. Hannover Rück SE was founded in 1966 and is based in Hanover, Germany. Hannover Rück SE operates as a subsidiary of Talanx AG.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.