Direct Line Insurance Group (OTCMKTS:DIISY – Get Free Report) and Allianz (OTCMKTS:ALIZY – Get Free Report) are both financial services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Direct Line Insurance Group and Allianz, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Direct Line Insurance Group | 1 | 4 | 2 | 0 | 2.14 |
Allianz | 0 | 5 | 3 | 0 | 2.38 |
Direct Line Insurance Group presently has a consensus target price of $174.71, suggesting a potential upside of 2,288.44%. Allianz has a consensus target price of $231.20, suggesting a potential upside of 872.25%. Given Direct Line Insurance Group’s higher probable upside, equities analysts clearly believe Direct Line Insurance Group is more favorable than Allianz.
Institutional & Insider Ownership
Earnings and Valuation
This table compares Direct Line Insurance Group and Allianz’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Direct Line Insurance Group | N/A | N/A | N/A | $0.90 | 8.17 |
Allianz | $160.88 billion | 0.60 | $7.10 billion | $2.07 | 11.49 |
Allianz has higher revenue and earnings than Direct Line Insurance Group. Direct Line Insurance Group is trading at a lower price-to-earnings ratio than Allianz, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Direct Line Insurance Group and Allianz’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Direct Line Insurance Group | N/A | N/A | N/A |
Allianz | 5.28% | 14.19% | 0.79% |
Dividends
Direct Line Insurance Group pays an annual dividend of $0.48 per share and has a dividend yield of 6.6%. Allianz pays an annual dividend of $0.87 per share and has a dividend yield of 3.7%. Direct Line Insurance Group pays out 54.1% of its earnings in the form of a dividend. Allianz pays out 42.0% 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
Allianz beats Direct Line Insurance Group on 9 of the 12 factors compared between the two stocks.
About Direct Line Insurance Group
Direct Line Insurance Group plc engages in the provision of general insurance products and services in the United Kingdom. The company operates through four segments: Motor, Home, Rescue and Other Personal Lines, and Commercial. It offers motor, home, rescue, travel, creditor, and pet insurance products, as well as insurance for mid-to-high-net worth customers; and commercial insurance for small and medium-sized enterprises. The company also provides claims and capital management, motor vehicle repair, insurance intermediary, support and operational, legal, and breakdown recovery services. It sells its insurance products directly through price comparison Websites and phone, as well as through partners and brokers under the Direct Line, Churchill, Green Flag, NIG, Direct Line for Business, Privilege, Darwin, and DLG Auto Services brands. The company was formerly known as RBS Insurance Group Limited and changed its name to Direct Line Insurance Group plc in February 2012. Direct Line Insurance Group plc was founded in 1985 and is based in Bromley, the United Kingdom.
About Allianz
Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company's Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company's Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.
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