Critical Survey: Everest Group (NYSE:EG) & AA (OTCMKTS:AATDF)

Everest Group (NYSE:EG) and AA (OTCMKTS:AATDF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Earnings & Valuation

This table compares Everest Group and AA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everest Group	$17.50 billion	0.98	$1.59 billion	$37.86	9.07
AA	N/A	N/A	N/A	N/A	N/A

Everest Group has higher revenue and earnings than AA.

Analyst Ratings

This is a summary of recent recommendations for Everest Group and AA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everest Group	0	10	6	0	2.38
AA	0	0	0	0	0.00

Everest Group presently has a consensus target price of $366.14, suggesting a potential upside of 6.61%. Given Everest Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Everest Group is more favorable than AA.

Insider and Institutional Ownership

92.6% of Everest Group shares are owned by institutional investors. 0.7% of Everest Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Everest Group and AA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everest Group	9.09%	12.50%	3.08%
AA	N/A	N/A	N/A

Summary

Everest Group beats AA on 9 of the 9 factors compared between the two stocks.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.

About AA

AA plc provides roadside assistance, insurance, and driving services in the United Kingdom. It operates through two segments, Roadside and Insurance. The company offers breakdowns cover for cars, motorcycles, caravans, vans, and towing; car, motorbike, van, and caravan insurance; and loans, savings, mortgage, travel currency card, insurance, and credit card products. It also provides home, content, building, pet, and holiday home insurance products; and travel services. In addition, the company offers driving advisory services, such as child safety, fuel and environment, legal advisory, service and repair, safety, security, and driving cost and other services; car and MOT services; and financial services, such as personal loans, car loans, home improvement loans, debt consolidation loans, wedding loans, loan management, savings, credit cards, and online security services, as well as reinsurance services. It serves fleet and leasing companies. The company was founded in 1905 and is headquartered in Basingstoke, the United Kingdom.