American Equity Investment Life (AEL) versus Scor (SCRYY) Head-To-Head Review

American Equity Investment Life (NYSE: AEL) and Scor (OTCMKTS:SCRYY) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares American Equity Investment Life and Scor’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Equity Investment Life $3.89 billion 0.82 $174.64 million $3.16 11.27
Scor $15.00 billion 0.47 $323.26 million $0.17 21.24

Scor has higher revenue and earnings than American Equity Investment Life. American Equity Investment Life is trading at a lower price-to-earnings ratio than Scor, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

American Equity Investment Life has a beta of 2.48, suggesting that its share price is 148% more volatile than the S&P 500. Comparatively, Scor has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares American Equity Investment Life and Scor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Equity Investment Life 8.49% 11.22% 0.50%
Scor 2.32% 5.17% 0.75%

Dividends

American Equity Investment Life pays an annual dividend of $0.26 per share and has a dividend yield of 0.7%. Scor pays an annual dividend of $0.15 per share and has a dividend yield of 4.2%. American Equity Investment Life pays out 8.2% of its earnings in the form of a dividend. Scor pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Equity Investment Life has increased its dividend for 5 consecutive years.

Insider and Institutional Ownership

93.5% of American Equity Investment Life shares are held by institutional investors. Comparatively, 0.4% of Scor shares are held by institutional investors. 1.9% of American Equity Investment Life shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for American Equity Investment Life and Scor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Equity Investment Life 0 4 2 0 2.33
Scor 1 3 1 0 2.00

American Equity Investment Life currently has a consensus target price of $31.67, suggesting a potential downside of 11.22%. Given American Equity Investment Life’s stronger consensus rating and higher possible upside, equities analysts plainly believe American Equity Investment Life is more favorable than Scor.

Summary

American Equity Investment Life beats Scor on 12 of the 17 factors compared between the two stocks.

American Equity Investment Life Company Profile

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States. The company issues fixed index and rate annuities; and single premium immediate annuities, as well as life insurance products. The company markets its products through various distribution channels, including national marketing organizations, broker/dealers, banks, and registered investment advisors. American Equity Investment Life Holding Company was founded in 1995 and is based in West Des Moines, Iowa.

Scor Company Profile

SCOR SE provides life and non-life reinsurance products worldwide. It operates through SCOR Global P&C and SCOR Global Life segments. The SCOR Global P&C segment offers reinsurance products in the areas of property and casualty treaties; specialty treaties, including credit and surety, decennial insurance, aviation, space, marine, engineering, agriculture risks, and alternative solutions; business solutions; business ventures and partnerships; and direct insurance products on a business-to-business basis. The SCOR Global Life segment provides life reinsurance products, including protection for mortality, morbidity, behavioral risks, disability, long-term care, critical illness, medical, and personal accident. This segment also provides financial solutions that combine traditional life reinsurance with financial components and provide liquidity, balance sheet, solvency, and income improvements to clients; longevity solutions that include products covering the risk of negative deviation from expected results due to the insured or annuitant living longer than assumed in the pricing of insurance covers provided by insurers or pension funds; and distribution solutions. In addition, the company is involved in the asset management business. SCOR SE was founded in 1970 and is headquartered in Paris, France.

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