Financial Analysis: Zurich Insurance Group (ZURVY) versus Green Dot (GDOT)

Zurich Insurance Group (OTCMKTS: ZURVY) and Green Dot (NYSE:GDOT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

0.3% of Zurich Insurance Group shares are held by institutional investors. Comparatively, 82.6% of Green Dot shares are held by institutional investors. 11.0% of Green Dot shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Zurich Insurance Group pays an annual dividend of $0.13 per share and has a dividend yield of 0.4%. Green Dot does not pay a dividend. Zurich Insurance Group pays out 6.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Zurich Insurance Group and Green Dot, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zurich Insurance Group 1 3 1 0 2.00
Green Dot 0 6 8 0 2.57

Green Dot has a consensus target price of $65.00, suggesting a potential downside of 14.32%. Given Green Dot’s stronger consensus rating and higher probable upside, analysts plainly believe Green Dot is more favorable than Zurich Insurance Group.

Profitability

This table compares Zurich Insurance Group and Green Dot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zurich Insurance Group N/A N/A N/A
Green Dot 12.10% 14.21% 5.22%

Earnings & Valuation

This table compares Zurich Insurance Group and Green Dot’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zurich Insurance Group $63.96 billion 0.71 $3.00 billion $1.99 14.99
Green Dot $890.15 million 4.42 $85.88 million $1.58 48.01

Zurich Insurance Group has higher revenue and earnings than Green Dot. Zurich Insurance Group is trading at a lower price-to-earnings ratio than Green Dot, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Zurich Insurance Group has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Summary

Green Dot beats Zurich Insurance Group on 11 of the 16 factors compared between the two stocks.

About Zurich Insurance Group

Zurich Insurance Group AG, together with its subsidiaries, provides insurance products and related services in Europe, North America, Latin America, and the Asia Pacific. The company operates through Property & Casualty Regions, Life Regions, Farmers, and Non-Core Businesses segments. It offers car, home, travel, general liability, life and critical illness, and other insurance products; and saving and investment, and pension and retirement planning products. The company also provides property, casualty, management or professional liability, trade credit, political risk, marine, automotive, and cyber risk insurance products; and international programs, risk engineering, claims, and captive services. In addition, it offers employee benefits and group risk solutions, corporate investment plans, multi-employer savings plans, pension plans, captive services, and pooling solutions, as well as international programs for employees. Further, the company provides non-claims administrative and management services to the farmers' exchanges; and reinsurance services. It serves individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. Zurich Insurance Group AG was founded in 1872 and is headquartered in Zurich, Switzerland.

About Green Dot

Green Dot Corporation, together with its subsidiaries, operates as a pro-consumer bank holding company that provides personal banking for the masses. It operates through two segments, Account Services and Processing, and Settlement Services. The company offers deposit as account programs, such reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer checking accounts, small business checking accounts, network-branded gift cards, secured credit cards, and other financial services. It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point of sale through Green Dot Network; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform. The company, through its subsidiary, Green Dot Bank, provides prepaid cards, debit cards, checking accounts, secured credit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. In addition, it offers mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services. It markets and sells its products and services through approximately 100,000 retail stores, various direct-to-consumer Websites, thousands of tax preparation offices, and various apps available in the 2 app stores, as well as distributes through various enterprise-scale ?Banking as a Service' partnerships, and Green Dot, a banking franchise in the United States. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California.

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