Head to Head Contrast: Tokio Marine (TKOMY) & RenaissanceRe (RNR)

RenaissanceRe (NYSE:RNR) and Tokio Marine (OTCMKTS:TKOMY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Volatility and Risk

RenaissanceRe has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Tokio Marine has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Dividends

RenaissanceRe pays an annual dividend of $1.36 per share and has a dividend yield of 0.9%. Tokio Marine pays an annual dividend of $1.17 per share and has a dividend yield of 2.3%. RenaissanceRe pays out 14.8% of its earnings in the form of a dividend. Tokio Marine pays out 32.2% 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. RenaissanceRe has raised its dividend for 14 consecutive years.

Profitability

This table compares RenaissanceRe and Tokio Marine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RenaissanceRe 10.96% 9.18% 2.26%
Tokio Marine N/A N/A N/A

Earnings & Valuation

This table compares RenaissanceRe and Tokio Marine’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RenaissanceRe $2.07 billion 3.09 $227.36 million $9.17 16.56
Tokio Marine $49.83 billion 0.75 $2.56 billion $3.63 13.74

Tokio Marine has higher revenue and earnings than RenaissanceRe. Tokio Marine is trading at a lower price-to-earnings ratio than RenaissanceRe, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for RenaissanceRe and Tokio Marine, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RenaissanceRe 2 5 3 0 2.10
Tokio Marine 0 0 0 0 N/A

RenaissanceRe currently has a consensus target price of $145.00, suggesting a potential downside of 4.52%. Given RenaissanceRe’s higher possible upside, analysts clearly believe RenaissanceRe is more favorable than Tokio Marine.

Institutional & Insider Ownership

95.7% of RenaissanceRe shares are held by institutional investors. Comparatively, 0.1% of Tokio Marine shares are held by institutional investors. 1.6% of RenaissanceRe shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

RenaissanceRe beats Tokio Marine on 12 of the 16 factors compared between the two stocks.

About RenaissanceRe

RenaissanceRe Holdings Ltd. provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including earthquakes, hurricanes, and tsunamis, as well as claims arising from other natural and man-made catastrophes comprising winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, and binding facilities and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer's liability, casualty clash, umbrella or excess casualty, workers' compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. The company distributes its products and services primarily through intermediaries. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

About Tokio Marine

Tokio Marine Holdings, Inc., together with its subsidiaries, engages in non-life and life insurance, international insurance, and financial and general businesses worldwide. The company provides business, fire, Internet and mobile, rental housing, and natural catastrophe risk insurance services, as well as insurance for retail and corporate fields. It also provides property investment, insurance agency and risk consulting, human resource, in-home care and nursing care information, healthcare/medical, call center, and real estate-related services. Tokio Marine Holdings, Inc. serves individuals, small to medium sized non-profit organizations, schools, or churches. The company was formerly known as Millea Holdings, Inc. and changed its name to Tokio Marine Holdings, Inc. in 2008. Tokio Marine Holdings, Inc. was founded in 2002 and is headquartered in Tokyo, Japan.

Receive News & Ratings for RenaissanceRe Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RenaissanceRe and related companies with MarketBeat.com's FREE daily email newsletter.