AEGON (NYSE:AEG) and Independence (NYSE:IHC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility & Risk
AEGON has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Independence has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.
This table compares AEGON and Independence’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for AEGON and Independence, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AEGON currently has a consensus price target of $5.00, indicating a potential downside of 2.72%. Given AEGON’s higher probable upside, research analysts clearly believe AEGON is more favorable than Independence.
Institutional and Insider Ownership
6.1% of AEGON shares are owned by institutional investors. Comparatively, 18.6% of Independence shares are owned by institutional investors. 7.0% of Independence shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
AEGON pays an annual dividend of $0.28 per share and has a dividend yield of 5.4%. Independence pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. AEGON pays out 31.1% of its earnings in the form of a dividend. AEGON has raised its dividend for 3 consecutive years and Independence has raised its dividend for 7 consecutive years.
Earnings and Valuation
This table compares AEGON and Independence’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AEGON||$38.94 billion||0.35||$838.51 million||$0.90||5.71|
|Independence||$350.77 million||1.54||$28.48 million||N/A||N/A|
AEGON has higher revenue and earnings than Independence.
Independence beats AEGON on 9 of the 15 factors compared between the two stocks.
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.
Independence Holding Company, through its subsidiaries, engages in life and health insurance business. The company's dental portfolio includes indemnity and PPO plans for employer groups of two or more lives, and for individuals within affinity groups; vision plans that offer a flat reimbursement amount for exams and materials; and short-term medical products for people with temporary needs for health coverage. It also provides supplemental products, including hospital indemnity, fixed indemnity limited benefit, critical illness, accident medical coverage, and life insurance products to individuals and families; and pet insurance and occupational accident insurance products. In addition, the company offers group long-term and short-term disability products to employers that provide benefit to their employees; New York short-term disability plan that offers temporary cash payments to replace wages lost; and group term life products, such as group term life, accidental death and dismemberment (AD&D), supplemental life and AD&D, and dependent life products. Independence Holding Company markets its products through general agents, independent brokers, and independent producers in 50 states of the United States, the District of Columbia, the Virgin Islands, and Puerto Rico. The company was founded in 1980 and is headquartered in Stamford, Connecticut.
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