Aegon NV (AEG) versus Its Peers Financial Analysis

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

Insider & Institutional Ownership

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

Profitability

This table compares Aegon NV and its peers’ 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 5.21% 1.96% 1.96%

Dividends

Aegon NV pays an annual dividend of $0.25 per share and has a dividend yield of 4.4%. 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 peers, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Aegon NV and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aegon NV $63.92 billion $3.21 billion 6.29
Aegon NV Competitors $28.59 billion $2.35 billion 53.43

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

Analyst Ratings

This is a summary of current recommendations for Aegon NV and its peers, 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 232 1116 1671 80 2.52

Aegon NV currently has a consensus target price of $4.80, indicating a potential downside of 16.08%. As a group, “Life & Health Insurance” companies have a potential upside of 7.26%. Given Aegon NV’s peers stronger consensus rating and higher possible upside, analysts plainly believe Aegon NV has less favorable growth aspects than its peers.

Risk and Volatility

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

Summary

Aegon NV peers beat Aegon NV on 9 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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