Critical Survey: Allianz (OTCMKTS:ALIZY) and MBIA (NYSE:MBI)

MBIA (NYSE:MBI) and Allianz (OTCMKTS:ALIZY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Earnings & Valuation

This table compares MBIA and Allianz”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MBIA	$94.00 million	2.58	-$177.00 million	($2.89)	-1.65
Allianz	$211.45 billion	0.94	$12.19 billion	$3.55	14.70

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

Volatility & Risk

MBIA has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Allianz has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for MBIA and Allianz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MBIA	1	0	1	0	2.00
Allianz	0	2	2	1	2.80

MBIA presently has a consensus target price of $7.00, suggesting a potential upside of 46.75%. Given MBIA’s higher probable upside, analysts plainly believe MBIA is more favorable than Allianz.

Institutional & Insider Ownership

61.0% of MBIA shares are held by institutional investors. Comparatively, 0.0% of Allianz shares are held by institutional investors. 11.3% of MBIA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares MBIA and Allianz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MBIA	-154.26%	N/A	-1.69%
Allianz	6.31%	18.33%	1.16%

Summary

Allianz beats MBIA on 10 of the 15 factors compared between the two stocks.

About MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.

About Allianz

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company’s Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company’s Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.