Head-To-Head Survey: Tiptree Financial (NASDAQ:TIPT) vs. Hannover Ruck (OTCMKTS:HVRRY)

Hannover Ruck (OTCMKTS:HVRRY) and Tiptree Financial (NASDAQ:TIPT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Hannover Ruck and Tiptree Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hannover Ruck	0	1	0	1	3.00
Tiptree Financial	0	1	0	0	2.00

Volatility and Risk

Hannover Ruck has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Tiptree Financial has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Hannover Ruck shares are held by institutional investors. Comparatively, 37.8% of Tiptree Financial shares are held by institutional investors. 31.9% of Tiptree Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Hannover Ruck and Tiptree Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hannover Ruck	$30.30 billion	1.30	$2.99 billion	$4.09	13.32
Tiptree Financial	$490,000.00	1,310.38	$34.93 million	$10.82	1.63

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hannover Ruck	9.41%	17.82%	3.51%
Tiptree Financial	N/A	-2.21%	-0.46%

Dividends

Hannover Ruck pays an annual dividend of $1.76 per share and has a dividend yield of 3.2%. Tiptree Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Hannover Ruck pays out 43.0% of its earnings in the form of a dividend. Tiptree Financial pays out 2.2% 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. Tiptree Financial has raised its dividend for 2 consecutive years.

Summary

Hannover Ruck beats Tiptree Financial on 9 of the 16 factors compared between the two stocks.

About Hannover Ruck

Hannover Rück SE, commonly known as Hannover Re, is a Germany-based reinsurance company headquartered in Hannover. Founded in 1966, it provides risk transfer and related services to insurers and other clients around the world. The company’s main business areas are property and casualty reinsurance and life and health reinsurance. Its offerings include coverage for risks such as natural catastrophes, property damage, liability, mortality and longevity, as well as tailored reinsurance and risk management solutions.

About Tiptree Financial

Tiptree Inc., formerly known as Tiptree Financial Inc., is a holding company focused primarily on insurance and related financial services. Its principal insurance platform, Fortegra, provides specialty property and casualty, accident and health, and warranty products and services. Fortegra works with insurers, agents, brokers, and other distribution partners, serving customers in the United States and international markets. Its offerings include coverage designed for specific customer groups and industries, as well as insurance programs and related services.