Financial Comparison: Cheche Group (NASDAQ:CCG) versus Hannover Ruck (OTCMKTS:HVRRY)

Cheche Group (NASDAQ:CCG) and Hannover Ruck (OTCMKTS:HVRRY) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cheche Group and Hannover Ruck, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheche Group	1	2	0	0	1.67
Hannover Ruck	0	2	0	1	2.67

Valuation and Earnings

This table compares Cheche Group and Hannover Ruck”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheche Group	$2.55 billion	0.01	-$2.47 million	($2.80)	-2.72
Hannover Ruck	$30.30 billion	1.16	$2.99 billion	$4.04	12.04

Hannover Ruck has higher revenue and earnings than Cheche Group. Cheche Group is trading at a lower price-to-earnings ratio than Hannover Ruck, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

19.8% of Cheche Group shares are owned by institutional investors. Comparatively, 0.0% of Hannover Ruck shares are owned by institutional investors. 1.2% of Cheche Group shares are owned 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.

Dividends

Cheche Group pays an annual dividend of $0.36 per share and has a dividend yield of 4.7%. Hannover Ruck pays an annual dividend of $1.76 per share and has a dividend yield of 3.6%. Cheche Group pays out -12.9% of its earnings in the form of a dividend. Hannover Ruck pays out 43.6% 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. Cheche Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Cheche Group has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Hannover Ruck has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Profitability

This table compares Cheche Group and Hannover Ruck’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheche Group	N/A	N/A	N/A
Hannover Ruck	9.33%	18.00%	3.48%

Summary

Hannover Ruck beats Cheche Group on 11 of the 15 factors compared between the two stocks.

About Cheche Group

Cheche Group Inc. offer auto insurance technology platform. The company evolved into a comprehensive, data-driven technology platform which offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions principally in China. Cheche Group Inc., formerly known as Prime Impact, is headquartered in Beijing, China.

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.