Contrasting M?nchener R?ckversicherungs-Gesellschaft (OTCMKTS:MURGY) & MGIC Investment (NYSE:MTG)

M?nchener R?ckversicherungs-Gesellschaft (OTCMKTS:MURGY) and MGIC Investment (NYSE:MTG) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

M?nchener R?ckversicherungs-Gesellschaft has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares M?nchener R?ckversicherungs-Gesellschaft and MGIC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M?nchener R?ckversicherungs-Gesellschaft	11.28%	21.44%	2.48%
MGIC Investment	59.63%	14.01%	10.96%

Institutional & Insider Ownership

0.2% of M?nchener R?ckversicherungs-Gesellschaft shares are owned by institutional investors. Comparatively, 95.6% of MGIC Investment shares are owned by institutional investors. 1.3% of MGIC Investment shares are owned by 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.

Valuation & Earnings

This table compares M?nchener R?ckversicherungs-Gesellschaft and MGIC Investment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M?nchener R?ckversicherungs-Gesellschaft	$68.33 billion	0.97	$6.92 billion	$2.46	4.33
MGIC Investment	$1.21 billion	4.57	$738.35 million	$3.15	8.33

M?nchener R?ckversicherungs-Gesellschaft has higher revenue and earnings than MGIC Investment. M?nchener R?ckversicherungs-Gesellschaft is trading at a lower price-to-earnings ratio than MGIC Investment, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for M?nchener R?ckversicherungs-Gesellschaft and MGIC Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M?nchener R?ckversicherungs-Gesellschaft	0	2	1	0	2.33
MGIC Investment	0	4	1	0	2.20

MGIC Investment has a consensus target price of $28.25, suggesting a potential upside of 7.68%. Given MGIC Investment’s higher possible upside, analysts clearly believe MGIC Investment is more favorable than M?nchener R?ckversicherungs-Gesellschaft.

Dividends

M?nchener R?ckversicherungs-Gesellschaft pays an annual dividend of $0.34 per share and has a dividend yield of 3.2%. MGIC Investment pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. M?nchener R?ckversicherungs-Gesellschaft pays out 13.8% of its earnings in the form of a dividend. MGIC Investment pays out 19.0% 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. MGIC Investment has increased its dividend for 6 consecutive years. M?nchener R?ckversicherungs-Gesellschaft is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

MGIC Investment beats M?nchener R?ckversicherungs-Gesellschaft on 10 of the 16 factors compared between the two stocks.

About M?nchener R?ckversicherungs-Gesellschaft

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. It also offers life and health reinsurance solutions, such as digital underwriting and advanced analytics solutions, health insurance management system, financial market risks, financing, portfolio risk management, digitalized investment-linked solution, MIRA digital suite, MIRA POS, MIRApply insured and physician, claims risk adjustment, CLARA plus, data analytics, underwriting and claims, medical research, capital management, and health market. The company also provides property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, property insurance, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, and cert2go, as well as consulting services for reinsurance, business advisory, portfolio performance and management, claims management, commercial motor, telematics, and electric vehicles. In addition, the company provides solutions for industry clients, such as IoT cover, earnings quality insurance protection, captive insurance and risk transfer, liability, weather risks, space and satellite insurance, solar and biomass insurance, wind insurance, digital asset, mining risks cover, construction projects covers and services, aviation insurance, power and utilities, industrial cyber insurance, risk suite, location risk intelligence, digital risks, PV warranty insurance, parametric, Insure AI, e-mobility, circular economy, liquidation damage cover, and natural catastrophes solutions. Further, it offers life, property-casualty, health, legal protection, and travel insurance products under the ERGO brand name; and insurance solutions for agriculture, captive, epidemic, cyber, and renewable energy. The company was founded in 1880 and is based in Munich, Germany.

About MGIC Investment

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin.