Sprott (NYSE:SII) and Zurich Insurance Group (OTCMKTS:ZURVY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Sprott pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. Zurich Insurance Group pays an annual dividend of $1.82 per share and has a dividend yield of 4.3%. Sprott pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Zurich Insurance Group pays out 71.1% of its earnings in the form of a dividend. Sprott has increased its dividend for 1 consecutive years. Zurich Insurance Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
24.4% of Sprott shares are held by institutional investors. Comparatively, 0.2% of Zurich 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 is poised for long-term growth.
Risk and Volatility
Sprott has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, Zurich Insurance Group has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
Earnings and Valuation
This table compares Sprott and Zurich Insurance Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sprott||$121.78 million||8.04||$26.98 million||$1.05||36.30|
|Zurich Insurance Group||$59.00 billion||1.07||$3.83 billion||$2.56||16.43|
Zurich Insurance Group has higher revenue and earnings than Sprott. Zurich Insurance Group is trading at a lower price-to-earnings ratio than Sprott, indicating that it is currently the more affordable of the two stocks.
This table compares Sprott and Zurich Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zurich Insurance Group||N/A||N/A||N/A|
This is a summary of current ratings and target prices for Sprott and Zurich Insurance Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zurich Insurance Group||1||3||8||0||2.58|
Sprott presently has a consensus price target of $57.00, indicating a potential upside of 49.57%. Given Sprott’s higher probable upside, research analysts plainly believe Sprott is more favorable than Zurich Insurance Group.
Sprott beats Zurich Insurance Group on 9 of the 16 factors compared between the two stocks.
Sprott, Inc. provides investment advisory services. It operates through the following segments: Exchange Listed Products, Lending, Managed Equities, Brokerage, and Corporate. The Exchange Listed Products segment provides management services to the company’s closed-end physical trusts and exchange traded funds. The Lending segment provides lending activities through limited partnership vehicles, as well as through direct lending activities using the company’s balance sheet. The Managed Equities segment provides asset management and sub-advisory services to the company’s branded funds and managed account. The Brokerage segment includes the activities of Canadian and U.S broker-dealers. The Corporate segment provides capital, balance sheet management and enterprise shared services to the company’s subsidiaries. The company was founded by Eric Steven Sprott on February 13, 2008 and is headquartered in Toronto, Canada.
About Zurich Insurance Group
Zurich Insurance Group AG is a holding company, which engages in the provision of insurance products and related services. It operates through the following segments: Property and Casualty Regions, Life Regions, Farmers, Group Functions and Operations, and Non-Core Businesses. The Property and Casualty Regions segment provides motor, home and commercial products and services for individuals, as well as small and large businesses on both a local and global basis. The Life Regions segment refers to the comprehensive range of life and health insurance products on both an individual and a group basis, including annuities, endowment and term insurance, unit-linked and investment-oriented products, as well as full private health, supplemental health and long-term care insurance. The Farmers segment includes non-claims administrative and management services to the Farmers Exchanges, which are owned by policyholders. The Group Functions and Operations segment comprises the Group �s Holding and Financing and Headquarters activities. The Non-Core Businesses segment includes insurance and reinsurance businesses that the Group does not consider core to its operations and that are therefore mos
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