Business

Financial Survey: Swiss Re (OTCMKTS:SSREY) versus MGIC Investment (NYSE:MTG)

MGIC Investment (NYSE:MTG – Get Free Report) and Swiss Re (OTCMKTS:SSREY – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

This is a summary of recent ratings for MGIC Investment and Swiss Re, as reported by MarketBeat.com.

MGIC Investment presently has a consensus price target of $28.00, indicating a potential upside of 8.25%. Given MGIC Investment’s stronger consensus rating and higher possible upside, research analysts plainly believe MGIC Investment is more favorable than Swiss Re.

95.6% of MGIC Investment shares are owned by institutional investors. 1.1% of MGIC Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

This table compares MGIC Investment and Swiss Re”s top-line revenue, earnings per share and valuation.

Swiss Re has higher revenue and earnings than MGIC Investment.

MGIC Investment pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Swiss Re pays an annual dividend of $1.15 per share and has a dividend yield of 2.8%. MGIC Investment pays out 19.1% of its earnings in the form of a dividend. MGIC Investment has increased its dividend for 6 consecutive years.

MGIC Investment has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Swiss Re has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

This table compares MGIC Investment and Swiss Re’s net margins, return on equity and return on assets.

MGIC Investment beats Swiss Re on 11 of the 16 factors compared between the two stocks.