Assicurazioni Generali (OTCMKTS:ARZGF) versus Direct Line Insurance Group (OTCMKTS:DIISY) Head to Head Review

Assicurazioni Generali (OTCMKTS:ARZGF – Get Rating) and Direct Line Insurance Group (OTCMKTS:DIISY – Get Rating) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Assicurazioni Generali and Direct Line Insurance Group, as reported by MarketBeat.com.

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Assicurazioni Generali presently has a consensus target price of $17.50, indicating a potential downside of 13.37%. Given Assicurazioni Generali’s higher possible upside, analysts plainly believe Assicurazioni Generali is more favorable than Direct Line Insurance Group.

Institutional & Insider Ownership

14.6% of Assicurazioni Generali shares are held by institutional investors. Comparatively, 0.3% of Direct Line Insurance Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Assicurazioni Generali and Direct Line Insurance Group’s revenue, earnings per share and valuation.

Direct Line Insurance Group is trading at a lower price-to-earnings ratio than Assicurazioni Generali, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Assicurazioni Generali and Direct Line Insurance Group’s net margins, return on equity and return on assets.

Dividends

Assicurazioni Generali pays an annual dividend of $0.33 per share and has a dividend yield of 1.6%. Direct Line Insurance Group pays an annual dividend of $0.48 per share and has a dividend yield of 6.1%. Assicurazioni Generali pays out 26.3% of its earnings in the form of a dividend. Direct Line Insurance Group pays out 54.1% 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.

Summary

Assicurazioni Generali beats Direct Line Insurance Group on 5 of the 8 factors compared between the two stocks.

About Assicurazioni Generali

(Get Rating)

Assicurazioni Generali SpA engages in the provision of insurance and financial products. It operates through the following business segments: Life, Property and Casualty, Asset Management, and Holding and Other Businesses. The Life segment offers coverage through a lump sum or an annuity payment if an event occurs involving human life in exchange for the premium payment as remuneration from the policyholder for the risk taken. The Property and Casualty segment offers insurance against damage to property, personal injury, and public liability. The Asset Management segment provides solutions for the selection and maintenance of listed and unlisted financial instruments in order to generate the best possible return for a given level of risk. The Holding and Other Businesses segment performs parent company functions through the management and coordination of administrative and financial services for the companies in the group. The company was founded on December 26, 1831 and is headquartered in Trieste, Italy.

About Direct Line Insurance Group

(Get Rating)

Direct Line Insurance Group Plc engages in the provision of general insurance services. It operates through the following business segments: Motor, Home, Rescue and Other Personal Lines and Commercial. The Motor segment consists of personal motor insurance cover together with the associated legal expenses business. The Home segment consists of home insurance together with associated legal protection cover. The Rescue and Other Personal Lines segment offers rescue products sold through the Group’s own brand, Green Flag, and personal lines insurance. The Commercial segment consists commercial insurance for small and medium-size entities sold through NIG, Direct Line for Business, Churchill for Business, and through partnership brands. The company was founded in 1985 and is headquartered in Bromley, the United Kingdom.

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