Insurance Australia Group (OTCMKTS:IAUGY – Get Free Report) and Hiscox (OTCMKTS:HCXLF – Get Free Report) are both financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Dividends
Insurance Australia Group pays an annual dividend of $1.86 per share and has a dividend yield of 9.8%. Hiscox pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Insurance Australia Group pays out 69.3% of its earnings in the form of a dividend. Hiscox pays out 12.3% 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.
Profitability
This table compares Insurance Australia Group and Hiscox’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Insurance Australia Group | N/A | N/A | N/A |
| Hiscox | N/A | N/A | N/A |
Insider & Institutional Ownership
Valuation & Earnings
This table compares Insurance Australia Group and Hiscox’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Insurance Australia Group | N/A | N/A | N/A | $2.68 | 7.10 |
| Hiscox | N/A | N/A | N/A | $0.64 | 21.81 |
Insurance Australia Group is trading at a lower price-to-earnings ratio than Hiscox, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Insurance Australia Group and Hiscox, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Insurance Australia Group | 0 | 1 | 1 | 0 | 2.50 |
| Hiscox | 0 | 3 | 0 | 0 | 2.00 |
Hiscox has a consensus price target of $1,167.71, suggesting a potential upside of 8,240.82%. Given Hiscox’s higher probable upside, analysts clearly believe Hiscox is more favorable than Insurance Australia Group.
About Insurance Australia Group
Insurance Australia Group Limited underwrites general insurance products and provides investment management services in Australia and New Zealand. It offers personal and commercial insurance products, including bicycle, comprehensive motor, commercial and motor fleet, commercial property and liability, construction and engineering, consumer credit, compulsory third party, directors and officers, extended warranty, farm, crop, livestock, home and contents, income protection, marine, veteran, vintage and classic car, boat, caravan, travel, life, professional indemnity, public and product liability, security, workers' compensation, motor vehicle, business, and rural and horticultural, as well as reinsurance. The company sells its products through branches and agencies, call centers, online facilities, brokers, agents, authorized representatives, and financial institutions; and third parties under the NRMA Insurance, SGIO, SGIC, RACV, CGU, ROLLiN, WFI, Swann Insurance, NZI, State, AMI, Lumley, and Coles Insurance brands. The company was formerly known as NRMA Insurance Group Limited and changed its name to Insurance Australia Group Limited in 2002. Insurance Australia Group Limited was founded in 1920 and is based in Sydney, Australia.
About Hiscox
Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, Europe, the United States, and internationally. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It offers commercial insurance for small-and medium-sized businesses; and personal lines cover, including high-value household, fine art, luxury motor, classic car, and partners and direct-to-consumer using both traditional and digital trading models. The company also provides property insurance; marine and energy insurance; aviation insurance; casualty insurance; specialty insurance; kidnap and ransom insurance; and other specialty insurance, such as contingency, terrorism, personal accident, and product recall. In addition, it offers healthcare and casualty reinsurance services, as well as investment services. Hiscox Ltd was founded in 1901 and is headquartered in Pembroke, Bermuda.
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