Critical Analysis: Aegon NV (NYSE:AEG) versus The Competition

Aegon NV (NYSE: AEG) is one of 29 publicly-traded companies in the “Life & Health Insurance” industry, but how does it weigh in compared to its competitors? We will compare Aegon NV to related businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares Aegon NV and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aegon NV $63.92 billion $3.21 billion 6.48
Aegon NV Competitors $28.59 billion $2.35 billion 53.78

Aegon NV has higher revenue and earnings than its competitors. Aegon NV is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Aegon NV has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Aegon NV’s competitors have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.

Profitability

This table compares Aegon NV and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aegon NV 5.18% 6.73% 0.40%
Aegon NV Competitors 4.84% 0.77% 1.23%

Analyst Recommendations

This is a summary of current recommendations and price targets for Aegon NV and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aegon NV 0 5 0 0 2.00
Aegon NV Competitors 234 1121 1679 81 2.52

Aegon NV presently has a consensus price target of $4.80, suggesting a potential downside of 18.64%. As a group, “Life & Health Insurance” companies have a potential upside of 7.38%. Given Aegon NV’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Aegon NV has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

10.6% of Aegon NV shares are held by institutional investors. Comparatively, 68.3% of shares of all “Life & Health Insurance” companies are held by institutional investors. 9.6% of shares of all “Life & Health Insurance” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Aegon NV pays an annual dividend of $0.25 per share and has a dividend yield of 4.2%. Aegon NV pays out 27.5% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.2% and pay out 35.9% of their earnings in the form of a dividend. Aegon NV is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Aegon NV competitors beat Aegon NV on 8 of the 15 factors compared.

About Aegon NV

Aegon N.V. (Aegon) is an international life insurance, pensions and asset management company. The Company’s segments include the Americas, which includes the United States, Mexico and Brazil; the Netherlands; the United Kingdom; Central & Eastern Europe; Spain & Portugal; Asia, and Aegon Asset Management. It offers protection against mortality, morbidity and longevity risks, including traditional and universal life. It offers products with mortality, morbidity, and longevity risks, including traditional and universal life; mortgages; annuity products, and banking products. It offers individual protection products, such as annuities, term insurance, income protection and international/offshore bonds. It has activities in the Czech Republic, Hungary, Poland, Romania, Slovakia and Turkey. It offers life insurance marketed to high-net-worth individuals in Hong Kong and Singapore. It also offers investment products covering third-party customers, insurance-linked solutions.

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