Financial Analysis: Brookfield Wealth Solutions (NYSE:BNT) vs. Hannover Rück (OTCMKTS:HVRRY)

Brookfield Wealth Solutions (NYSE:BNT) and Hannover Rück (OTCMKTS:HVRRY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Valuation and Earnings

This table compares Brookfield Wealth Solutions and Hannover Rück”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Wealth Solutions	$14.10 billion	0.61	$1.21 billion	$0.32	186.04
Hannover Rück	$26.47 billion	1.18	$1.97 billion	$3.38	12.75

Hannover Rück has higher revenue and earnings than Brookfield Wealth Solutions. Hannover Rück is trading at a lower price-to-earnings ratio than Brookfield Wealth Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Brookfield Wealth Solutions and Hannover Rück, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Wealth Solutions	0	0	0	0	0.00
Hannover Rück	1	0	0	0	1.00

Institutional & Insider Ownership

20.3% of Brookfield Wealth Solutions shares are held by institutional investors. Comparatively, 0.0% of Hannover Rück shares are held by institutional investors. 1.0% of Brookfield Wealth Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Brookfield Wealth Solutions has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Hannover Rück has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares Brookfield Wealth Solutions and Hannover Rück’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Wealth Solutions	0.10%	0.14%	0.01%
Hannover Rück	8.78%	19.44%	3.29%

Dividends

Brookfield Wealth Solutions pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Hannover Rück pays an annual dividend of $0.77 per share and has a dividend yield of 1.8%. Brookfield Wealth Solutions pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannover Rück pays out 22.8% of its earnings in the form of a dividend. Hannover Rück is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Hannover Rück beats Brookfield Wealth Solutions on 10 of the 14 factors compared between the two stocks.

About Brookfield Wealth Solutions

Brookfield Wealth Solutions is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Through our operating subsidiaries, we offer a broad range of insurance products and services, including annuities, personal and commercial property and casualty insurance and life insurance.The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.

About Hannover Rück

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services in Germany, the United Kingdom, France, Europe, the United States, Asia, Australia, Africa, and internationally. It operates through Property & Casualty Reinsurance; and Life & Health Reinsurance segments. The company provides property and casualty reinsurance solutions for agricultural, livestock, and bloodstock; aviation and space; catastrophe XL; credit, surety, and political risks; facultative; and marine and offshore energy businesses, as well as insurance-linked securities and structured reinsurance. It offers risk solutions in the areas of critical illness, disability, health, longevity, long term care, and mortality. In addition, the company offers group life, retirement, lifestyle, credit life, and Takaful reinsurance products. Further, the company provides various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and reinsurance and solvency II businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. Hannover Rück SE was founded in 1966 and is based in Hanover, Germany. Hannover Rück SE operates as a subsidiary of Talanx AG.