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

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

Institutional & Insider 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Hannover Ruck and Tiptree Financial, as provided 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

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	9.33%	18.00%	3.48%
Tiptree Financial	N/A	-2.21%	-0.46%

Valuation and Earnings

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	$4.04	13.43
Tiptree Financial	$490,000.00	1,302.94	$34.93 million	$10.82	1.62

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.

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 43.6% 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 increased its dividend for 2 consecutive years.

Risk and Volatility

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.

Summary

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

About Hannover Ruck

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services in Germany, the United Kingdom, France, Europe, the United States, Asia, Australia, Africa, and internationally. It operates through Property & Casualty Reinsurance; and Life & Health Reinsurance segments. The company provides property and casualty reinsurance solutions for agricultural, livestock, and bloodstock; aviation and space; catastrophe XL; credit, surety, and political risks; facultative; and marine and offshore energy businesses, as well as insurance-linked securities and structured reinsurance. It offers risk solutions in the areas of critical illness, disability, health, longevity, long term care, and mortality. In addition, the company offers group life, retirement, lifestyle, credit life, and Takaful reinsurance products. Further, the company provides various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and reinsurance and solvency II businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. Hannover Rück SE was founded in 1966 and is based in Hanover, Germany. Hannover Rück SE operates as a subsidiary of Talanx AG.

About Tiptree Financial

Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services primarily in the United States. It operates through two segments: Insurance and Mortgage. The company offers niche; commercial lines insurance products, including professional liability, general liability, contractual liability protection, property and other short-tail, and alternative risks insurance products; and personal lines insurance products, such as credit protection surrounding loan payments. It also provides auto and consumer warranty programs, including mobile devices, consumer electronics, appliances, furniture; and vehicle service contracts, GAP, and ancillary products; as well as premium or warranty contract financing services, lead generation support, and business process outsourcing services. In addition, the company offers mortgage loans for institutional investors; asset management services; and maritime shipping and asset management services, as well as invests in shares. It markets its products through a network of independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was founded in 1978 and is headquartered in Greenwich, Connecticut.