Zurich Insurance Group (OTCMKTS: ZURVY) and Ally Financial (NYSE:ALLY) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
This table compares Zurich Insurance Group and Ally Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zurich Insurance Group||N/A||N/A||N/A|
0.3% of Zurich Insurance Group shares are owned by institutional investors. 0.2% of Ally Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Ally Financial pays an annual dividend of $0.52 per share and has a dividend yield of 1.9%. Zurich Insurance Group does not pay a dividend. Ally Financial pays out 21.8% of its earnings in the form of a dividend.
Risk & Volatility
Zurich Insurance Group has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Zurich Insurance Group and Ally Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zurich Insurance Group||1||3||2||0||2.17|
Ally Financial has a consensus target price of $33.00, suggesting a potential upside of 21.28%. Given Ally Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Ally Financial is more favorable than Zurich Insurance Group.
Earnings and Valuation
This table compares Zurich Insurance Group and Ally Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zurich Insurance Group||$63.96 billion||0.76||$3.00 billion||$1.99||16.31|
|Ally Financial||$9.87 billion||1.20||$929.00 million||$2.39||11.38|
Zurich Insurance Group has higher revenue and earnings than Ally Financial. Ally Financial is trading at a lower price-to-earnings ratio than Zurich Insurance Group, indicating that it is currently the more affordable of the two stocks.
Ally Financial beats Zurich Insurance Group on 11 of the 16 factors compared between the two stocks.
About Zurich Insurance Group
Zurich Insurance Group AG, together with its subsidiaries, provides insurance products and related services in Europe, North America, Latin America, and the Asia Pacific. The company operates through Property & Casualty Regions, Life Regions, Farmers, and Non-Core Businesses segments. It offers car, home, travel, general liability, life and critical illness, and other insurance products; and saving and investment, and pension and retirement planning products. The company also provides property, casualty, management or professional liability, trade credit, political risk, marine, automotive, and cyber risk insurance products; and international programs, risk engineering, claims, and captive services. In addition, it offers employee benefits and group risk solutions, corporate investment plans, multi-employer savings plans, pension plans, captive services, and pooling solutions, as well as international programs for employees. Further, the company provides non-claims administrative and management services to the farmers' exchanges; and reinsurance services. It serves individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. Zurich Insurance Group AG was founded in 1872 and is headquartered in Zurich, Switzerland.
About Ally Financial
Ally Financial Inc. provides various financial products and services for consumers, businesses, automotive dealers, and corporate clients in the United States and Canada. The company operates Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. The Automotive Finance Operations segment provides automotive financing services to consumers and automotive dealers. Its automotive finance services include providing retail installment sales contracts, loans and leases, term loans to dealers, financing dealer floorplans, other lines of credit to dealers, warehouse lines to companies, and fleet financing. This segment also offers financing services to companies and municipalities for the purchase or lease of vehicles and equipment, and vehicle remarketing services. The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers. The Mortgage Finance Operations segment manages held-for-investment consumer mortgage finance loan portfolio that includes bulk purchases of high-quality jumbo and LMI mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings. The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to middle market companies. Its primary focus is on businesses owned by private equity sponsors with loans used for leveraged buyouts, mergers and acquisitions, debt refinancing, restructurings, and working capital. The company, through its subsidiary, Ally Bank, also offers commercial banking products and services. In addition, it provides digital wealth management and online brokerage platform services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is headquartered in Detroit, Michigan.
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