Critical Survey: AEGON (AEG) and Athene (ATH)

Athene (NYSE: ATH) and AEGON (NYSE:AEG) are both large-cap financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Athene and AEGON, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Athene 0 4 11 0 2.73
AEGON 0 2 0 0 2.00

Athene currently has a consensus target price of $61.45, suggesting a potential upside of 20.64%. AEGON has a consensus target price of $4.60, suggesting a potential downside of 28.24%. Given Athene’s stronger consensus rating and higher probable upside, analysts plainly believe Athene is more favorable than AEGON.

Valuation & Earnings

This table compares Athene and AEGON’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Athene $4.11 billion 2.48 $805.00 million $7.15 7.12
AEGON $37.25 billion 0.35 $483.58 million $0.99 6.47

Athene has higher earnings, but lower revenue than AEGON. AEGON is trading at a lower price-to-earnings ratio than Athene, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

48.4% of Athene shares are held by institutional investors. Comparatively, 10.1% of AEGON shares are held by institutional investors. 10.6% of Athene shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Athene and AEGON’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Athene 22.66% 13.31% 1.15%
AEGON 5.64% 6.60% 0.39%

Dividends

AEGON pays an annual dividend of $0.25 per share and has a dividend yield of 3.9%. Athene does not pay a dividend. AEGON pays out 25.3% of its earnings in the form of a dividend. AEGON has raised its dividend for 2 consecutive years.

Summary

Athene beats AEGON on 13 of the 16 factors compared between the two stocks.

Athene Company Profile

Athene Holding Ltd. is an insurance holding company. The Company’s segments include Retirement Services, Corporate and Other. Retirement Services segment consists of the United States and Bermuda operations, which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to its policyholders. Retirement Services has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one year guarantee fixed deferred annuities, immediate annuities and institutional products from its reinsurance partners. It offers two product lines: annuities and funding agreements. It offers deferred and immediate annuities, which are focused on the needs and objectives of people preparing for, approaching or living in retirement. It focuses on issuing funding agreements to institutional investors. Its life and other products include other retail products.

AEGON Company Profile

Aegon N.V. (Aegon) is an international life insurance, pensions and asset management company. The Company’s segments include the Americas, which includes the United States, Mexico and Brazil; the Netherlands; the United Kingdom; Central & Eastern Europe; Spain & Portugal; Asia, and Aegon Asset Management. It offers protection against mortality, morbidity and longevity risks, including traditional and universal life. It offers products with mortality, morbidity, and longevity risks, including traditional and universal life; mortgages; annuity products, and banking products. It offers individual protection products, such as annuities, term insurance, income protection and international/offshore bonds. It has activities in the Czech Republic, Hungary, Poland, Romania, Slovakia and Turkey. It offers life insurance marketed to high-net-worth individuals in Hong Kong and Singapore. It also offers investment products covering third-party customers, insurance-linked solutions.

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