Comparing Horace Mann Educators (NYSE:HMN) & Allianz (OTCMKTS:ALIZY)

Allianz (OTCMKTS:ALIZY) and Horace Mann Educators (NYSE:HMN) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

0.0% of Allianz shares are held by institutional investors. Comparatively, 99.3% of Horace Mann Educators shares are held by institutional investors. 3.8% of Horace Mann Educators shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Allianz and Horace Mann Educators’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allianz	5.47%	16.50%	1.01%
Horace Mann Educators	8.49%	14.23%	1.29%

Analyst Ratings

This is a breakdown of recent ratings for Allianz and Horace Mann Educators, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allianz	1	4	0	0	1.80
Horace Mann Educators	0	3	1	1	2.60

Horace Mann Educators has a consensus price target of $46.75, suggesting a potential upside of 6.02%. Given Horace Mann Educators’ stronger consensus rating and higher probable upside, analysts plainly believe Horace Mann Educators is more favorable than Allianz.

Valuation and Earnings

This table compares Allianz and Horace Mann Educators”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allianz	$194.56 billion	0.84	$10.75 billion	$2.84	14.94
Horace Mann Educators	$1.60 billion	1.13	$102.80 million	$3.38	13.05

Allianz has higher revenue and earnings than Horace Mann Educators. Horace Mann Educators is trading at a lower price-to-earnings ratio than Allianz, indicating that it is currently the more affordable of the two stocks.

Dividends

Allianz pays an annual dividend of $1.18 per share and has a dividend yield of 2.8%. Horace Mann Educators pays an annual dividend of $1.40 per share and has a dividend yield of 3.2%. Allianz pays out 41.5% of its earnings in the form of a dividend. Horace Mann Educators pays out 41.4% 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. Horace Mann Educators has raised its dividend for 17 consecutive years. Horace Mann Educators is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Allianz has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500.

Summary

Horace Mann Educators beats Allianz on 13 of the 18 factors compared between the two stocks.

About Allianz

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company’s Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company’s Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.

About Horace Mann Educators

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.