HANNOVER RUECK/S (NASDAQ: AAME) and Atlantic American (NASDAQ:AAME) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares HANNOVER RUECK/S and Atlantic American’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HANNOVER RUECK/S 5.54% 11.45% 1.65%
Atlantic American 0.79% -3.74% -1.18%

Analyst Ratings

This is a breakdown of recent ratings and target prices for HANNOVER RUECK/S and Atlantic American, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HANNOVER RUECK/S 0 1 1 0 2.50
Atlantic American 0 0 0 0 N/A

Valuation and Earnings

This table compares HANNOVER RUECK/S and Atlantic American’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HANNOVER RUECK/S $19.66 billion 0.84 $1.08 billion $4.49 15.23
Atlantic American $181.11 million 0.33 $4.52 million N/A N/A

HANNOVER RUECK/S has higher revenue and earnings than Atlantic American.

Volatility and Risk

HANNOVER RUECK/S has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Atlantic American has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Dividends

HANNOVER RUECK/S pays an annual dividend of $1.51 per share and has a dividend yield of 2.2%. Atlantic American pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. HANNOVER RUECK/S pays out 33.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

0.1% of HANNOVER RUECK/S shares are owned by institutional investors. Comparatively, 5.3% of Atlantic American shares are owned by institutional investors. 79.2% of Atlantic American shares are owned 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.

Summary

HANNOVER RUECK/S beats Atlantic American on 9 of the 12 factors compared between the two stocks.

HANNOVER RUECK/S Company Profile

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services worldwide. It operates through Property & Casualty Reinsurance, and Life & Health Reinsurance segments. The Property & Casualty Reinsurance segment offers specialty lines comprising marine, aviation, facultative, credit, surety, and political risks reinsurance products; and treaty, catastrophe XL, and structured reinsurance, as well as insurance-linked securities. This segment also provides risk solutions for casualty and property, as well as for agricultural, livestock, and bloodstock businesses; aviation and space business; and marine and offshore energy business. The Life & Health Reinsurance segment offers, enhanced annuities, group life and health, guaranteed simplified issue, 60+, and Sharia-compliant Takaful reinsurance products, as well as micro insurance products. This segment also provides risk solutions in the areas of critical illness, disability, health, longevity, long term care, and mortality. In addition, it offers various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and divestiture of non-core businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. The company was founded in 1966 and is based in Hanover, Germany. Hannover Rück SE is a subsidiary of Talanx AG.

Atlantic American Company Profile

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidelity segments. The company offers property and casualty insurance products, including business automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; and inland marine and general liability insurance products. It also provides surety bond coverage for school bus transportation and subdivision construction, as well as performance and payment bonds. In addition, it provides ordinary and term life insurance, medicare supplement, and other accident and health insurance products. The company markets its products through independent agents, broker-agents, and special market agents. Atlantic American Corporation was founded in 1968 and is based in Atlanta, Georgia.

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