Analyzing Old Mutual (ODMTY) & Aegon (AEG)

Old Mutual (OTCMKTS: ODMTY) and Aegon (NYSE:AEG) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Old Mutual and Aegon, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Old Mutual 0 0 0 0 N/A
Aegon 0 2 0 0 2.00

Aegon has a consensus target price of $4.60, indicating a potential downside of 33.72%. Given Aegon’s higher possible upside, analysts clearly believe Aegon is more favorable than Old Mutual.

Dividends

Old Mutual pays an annual dividend of $0.69 per share and has a dividend yield of 2.5%. Aegon pays an annual dividend of $0.25 per share and has a dividend yield of 3.6%. Aegon pays out 29.8% of its earnings in the form of a dividend. Aegon has raised its dividend for 2 consecutive years. Aegon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

9.1% of Aegon shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Old Mutual and Aegon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Old Mutual N/A N/A N/A
Aegon 7.24% 6.59% 0.40%

Volatility & Risk

Old Mutual has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Aegon has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares Old Mutual and Aegon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Old Mutual $13.35 billion 1.25 $1.17 billion N/A N/A
Aegon $37.24 billion 0.38 $2.79 billion $0.84 8.26

Aegon has higher revenue and earnings than Old Mutual.

Summary

Aegon beats Old Mutual on 9 of the 12 factors compared between the two stocks.

Aegon Company Profile

Aegon N.V. provides life insurance, pensions, and asset management services. It offers life and protection products, such as traditional and universal life insurance products, as well as employer, endowment, term, and whole life insurance products; and supplemental health, accidental death and dismemberment insurance, critical illness, cancer treatment, credit/disability, income protection, travel, and long-term care insurance products. The company also provides variable and fixed annuities, retirement plans, mutual funds, and stable value solutions; individual and group pensions sponsored by or obtained through an employer; and mortgages, as well as banking products, including saving deposits. In addition, it offers general insurance products consisting of automotive, liability, disability, household insurance, and fire protection, as well as financing and reinsurance services. The company markets its products through brokerage, partner, institutional/worksite, and wholesale distribution channels. It has operations in the United States, Mexico, Brazil, the Netherlands, the United Kingdom, Central and Eastern Europe, Spain, Portugal, and Asia. The company was founded in 1983 and is headquartered in The Hague, the Netherlands.

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