Tiptree Financial (NASDAQ:TIPT – Get Free Report) and Hannover Ruck (OTCMKTS:HVRRY – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
Institutional and Insider Ownership
37.8% of Tiptree Financial shares are owned by institutional investors. Comparatively, 0.0% of Hannover Ruck shares are owned by institutional investors. 31.9% of Tiptree Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Tiptree Financial and Hannover Ruck, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tiptree Financial | 0 | 1 | 0 | 0 | 2.00 |
| Hannover Ruck | 0 | 1 | 0 | 1 | 3.00 |
Profitability
This table compares Tiptree Financial and Hannover Ruck’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tiptree Financial | N/A | -2.21% | -0.46% |
| Hannover Ruck | 9.33% | 18.00% | 3.48% |
Volatility & Risk
Tiptree Financial has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Hannover Ruck has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.
Dividends
Tiptree Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Hannover Ruck pays an annual dividend of $1.76 per share and has a dividend yield of 3.2%. Tiptree Financial pays out 2.2% 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. Tiptree Financial has increased its dividend for 2 consecutive years.
Earnings & Valuation
This table compares Tiptree Financial and Hannover Ruck”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tiptree Financial | $490,000.00 | 1,302.94 | $34.93 million | $10.82 | 1.62 |
| Hannover Ruck | $30.30 billion | 1.30 | $2.99 billion | $4.04 | 13.43 |
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.
Summary
Hannover Ruck beats Tiptree Financial on 9 of the 16 factors compared between the two stocks.
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.
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.
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