Analyzing AMERISAFE (NASDAQ:AMSF) & Hannover Ruck (OTCMKTS:HVRRY)

Hannover Ruck (OTCMKTS:HVRRY) and AMERISAFE (NASDAQ:AMSF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Valuation & Earnings

This table compares Hannover Ruck and AMERISAFE”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hannover Ruck	$30.30 billion	1.23	$2.99 billion	$4.04	12.75
AMERISAFE	$317.25 million	1.46	$47.15 million	$2.48	10.10

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

Institutional and Insider Ownership

0.0% of Hannover Ruck shares are owned by institutional investors. Comparatively, 97.4% of AMERISAFE shares are owned by institutional investors. 1.9% of AMERISAFE shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Hannover Ruck and AMERISAFE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hannover Ruck	9.33%	18.00%	3.48%
AMERISAFE	14.00%	14.87%	3.35%

Analyst Ratings

This is a summary of current recommendations for Hannover Ruck and AMERISAFE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hannover Ruck	0	1	0	1	3.00
AMERISAFE	1	2	2	0	2.20

AMERISAFE has a consensus target price of $35.67, suggesting a potential upside of 42.34%. Given AMERISAFE’s higher possible upside, analysts plainly believe AMERISAFE is more favorable than Hannover Ruck.

Dividends

Hannover Ruck pays an annual dividend of $1.76 per share and has a dividend yield of 3.4%. AMERISAFE pays an annual dividend of $1.64 per share and has a dividend yield of 6.5%. Hannover Ruck pays out 43.6% of its earnings in the form of a dividend. AMERISAFE pays out 66.1% 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. AMERISAFE has raised its dividend for 12 consecutive years. AMERISAFE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Hannover Ruck has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500. Comparatively, AMERISAFE has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

About Hannover Ruck

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 AMERISAFE

AMERISAFE, Inc., an insurance holding company, underwrites workers’ compensation insurance in the United States. The company provides benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It sells its products through retail and wholesale brokers and agents; and small and mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. AMERISAFE, Inc. was incorporated in 1985 and is based in DeRidder, Louisiana.