Analyzing Reinsurance Group of America (NYSE:RGA) & NN Group (OTCMKTS:NNGRY)

NN Group (OTCMKTS:NNGRY) and Reinsurance Group of America (NYSE:RGA) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Volatility and Risk

NN Group has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Reinsurance Group of America has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Earnings and Valuation

This table compares NN Group and Reinsurance Group of America”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NN Group	$13.03 billion	1.78	$1.34 billion	N/A	N/A
Reinsurance Group of America	$23.70 billion	0.58	$1.18 billion	$18.46	11.42

NN Group has higher earnings, but lower revenue than Reinsurance Group of America.

Institutional and Insider Ownership

0.0% of NN Group shares are held by institutional investors. Comparatively, 95.1% of Reinsurance Group of America shares are held by institutional investors. 0.6% of Reinsurance Group of America shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NN Group and Reinsurance Group of America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NN Group	1	5	2	0	2.13
Reinsurance Group of America	1	3	6	0	2.50

Reinsurance Group of America has a consensus price target of $249.00, suggesting a potential upside of 18.08%. Given Reinsurance Group of America’s stronger consensus rating and higher probable upside, analysts plainly believe Reinsurance Group of America is more favorable than NN Group.

Profitability

This table compares NN Group and Reinsurance Group of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NN Group	N/A	N/A	N/A
Reinsurance Group of America	4.92%	13.16%	1.13%

Dividends

NN Group pays an annual dividend of $1.62 per share and has a dividend yield of 3.7%. Reinsurance Group of America pays an annual dividend of $3.72 per share and has a dividend yield of 1.8%. Reinsurance Group of America pays out 20.2% of its earnings in the form of a dividend. Reinsurance Group of America has raised its dividend for 16 consecutive years.

Summary

Reinsurance Group of America beats NN Group on 10 of the 15 factors compared between the two stocks.

About NN Group

NN Group N.V., a financial services company, provides life and non-life insurance products in the Netherlands and internationally. The company operates through Netherlands Life, Netherlands Non-life, Insurance Europe, Japan Life, Banking, and Other segments. It offers Life insurance products, such as group and individual pension products, retail life insurance, and SME life insurance products; and non-life insurance products, including motor, fire, liability, transport, travel, health, property and casualty, and disability and accident insurance products. The company also provides banking services, including mortgage loans, bank annuities, consumer savings, and retail savings and investment products; reinsurance services; and retirement products and services. It offers its products to individuals, small and medium-sized enterprises, and Corporates customers directly through tied agents, agents/ brokers, platform insurance, and direct channels. The company was formerly known as ING Insurance Topholding N.V. and changed its name to NN Group N.V. in March 2014. NN Group N.V. was founded in 1845 and is headquartered in the Hague, the Netherlands.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated engages in reinsurance business. The company offers individual and group life and health insurance products, such as term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products; asset-intensive and financial reinsurance products; and other capital motivated solutions. It also provides reinsurance for mortality, morbidity, lapse, and investment-related risk associated with products; and reinsurance for investment-related risks. In addition, the company develops and markets technology solutions; and provides consulting and outsourcing solutions for the insurance and reinsurance industries. It operates in the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1973 and is headquartered in Chesterfield, Missouri.