Critical Comparison: Swiss Re (SSREY) versus Its Peers
Swiss Re (OTCMKTS: SSREY) is one of 149 public companies in the “INSURANCE” industry, but how does it weigh in compared to its rivals? We will compare Swiss Re to similar businesses based on the strength of its earnings, profitability, valuation, analyst recommendations, institutional ownership, risk and dividends.
Institutional and Insider Ownership
0.1% of Swiss Re shares are held by institutional investors. Comparatively, 63.8% of shares of all “INSURANCE” companies are held by institutional investors. 13.2% of shares of all “INSURANCE” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Swiss Re and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Swiss Re Competitors||4.04%||3.30%||0.90%|
This is a summary of recent ratings for Swiss Re and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Swiss Re Competitors||913||3908||4439||208||2.42|
As a group, “INSURANCE” companies have a potential downside of 4.86%. Given Swiss Re’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Swiss Re has less favorable growth aspects than its rivals.
Earnings & Valuation
This table compares Swiss Re and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Swiss Re||$42.49 billion||$331.00 million||4.01|
|Swiss Re Competitors||$14.39 billion||$1.01 billion||9.18|
Swiss Re has higher revenue, but lower earnings than its rivals. Swiss Re is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Swiss Re pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. Swiss Re pays out 15.8% of its earnings in the form of a dividend. As a group, “INSURANCE” companies pay a dividend yield of 1.7% and pay out 23.8% of their earnings in the form of a dividend. Swiss Re is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Volatility & Risk
Swiss Re has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Swiss Re’s rivals have a beta of 0.94, meaning that their average share price is 6% less volatile than the S&P 500.
Swiss Re rivals beat Swiss Re on 12 of the 15 factors compared.
About Swiss Re
Swiss Re AG is a wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. The Company operates in four segments: Property&Casualty Reinsurance, Life&Health Reinsurance, Corporate Solutions and Life Capital. Its Reinsurance Unit provides premiums and fee income through Property&Casualty and Life&Health segments. Its Corporate Solutions segment is engaged in serving mid-sized and large corporations, with product offerings ranging from traditional property and casualty insurance to customized solutions. Its Admin Re segment provides risk and capital management solutions by which the Company acquires closed books of in-force life and health insurance business, entire lines of business, or the entire capital stock of life insurance companies. Its open and closed life insurance books, including Admin Re, are managed under a unit called Life Capital.
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