Contrasting Allianz (OTCMKTS:ALIZY) & Allstate (NYSE:ALL)

Allstate (NYSE:ALL) and Allianz (OTCMKTS:ALIZY) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Dividends

Allstate pays an annual dividend of $4.32 per share and has a dividend yield of 1.6%. Allianz pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. Allstate pays out 9.8% of its earnings in the form of a dividend. Allianz pays out 39.4% 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. Allstate has raised its dividend for 15 consecutive years.

Institutional and Insider Ownership

76.5% of Allstate shares are owned by institutional investors. Comparatively, 0.0% of Allianz shares are owned by institutional investors. 1.5% of Allstate 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.

Risk and Volatility

Allstate has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, Allianz has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Earnings & Valuation

This table compares Allstate and Allianz”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allstate	$67.69 billion	0.98	$10.28 billion	$44.16	6.05
Allianz	$211.45 billion	0.94	$12.19 billion	$3.55	14.68

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

Profitability

This table compares Allstate and Allianz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allstate	16.57%	38.37%	9.29%
Allianz	6.31%	18.33%	1.16%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Allstate and Allianz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allstate	3	10	7	2	2.36
Allianz	0	2	2	0	2.50

Allstate currently has a consensus target price of $273.48, suggesting a potential upside of 2.29%. Given Allstate’s higher probable upside, analysts clearly believe Allstate is more favorable than Allianz.

Summary

Allstate beats Allianz on 12 of the 18 factors compared between the two stocks.

About Allstate

Allstate Corporation is a U.S.-based insurance company that provides property and casualty coverage and related protection products. Its offerings include auto, homeowners, renters, condominium, motorcycle and recreational vehicle insurance, as well as life insurance and roadside assistance. The company sells products through its Allstate-branded business and other businesses, including National General, using agents and direct-to-consumer channels. Allstate primarily serves customers in the United States.

About Allianz

Allianz SE is a global insurance and financial services company founded in Berlin in 1890 and headquartered in Munich, Germany. It serves individuals, businesses and institutional clients in markets around the world. The company’s insurance operations include property and casualty coverage, life insurance, health insurance and related services. Its offerings address risks ranging from personal and commercial property to health, retirement and employee benefits. Allianz also provides investment and asset management services through businesses including Allianz Global Investors and PIMCO.