Hannover Rück (OTCMKTS:HVRRY) & Brookfield Wealth Solutions (NYSE:BNT) Critical Analysis

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hannover Rück and Brookfield Wealth Solutions, as reported by MarketBeat.com.

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

Risk and Volatility

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

Insider and Institutional Ownership

0.0% of Hannover Rück shares are held by institutional investors. Comparatively, 20.3% of Brookfield Wealth Solutions 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Hannover Rück pays an annual dividend of $0.77 per share and has a dividend yield of 1.8%. Brookfield Wealth Solutions pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Hannover Rück pays out 22.8% of its earnings in the form of a dividend. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hannover Rück	$26.47 billion	1.18	$1.97 billion	$3.38	12.75
Brookfield Wealth Solutions	$14.10 billion	0.62	$1.21 billion	$0.32	189.07

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.

Summary

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

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.

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.