Allianz vs QBE Insurance Which Performs Better?

Allianz and QBE Insurance are major players in the global insurance industry with a strong presence in multiple markets around the world. While both companies offer a wide range of insurance products and services, they have distinct differences in their financial performance, market positioning, and strategic outlook. Investors looking to invest in insurance stocks may consider comparing Allianz and QBE Insurance to make an informed decision based on their individual risk tolerance and investment objectives.

Allianz or QBE Insurance?

When comparing Allianz and QBE Insurance, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Allianz and QBE Insurance.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Allianz has a dividend yield of 5.37%, while QBE Insurance has a dividend yield of 3.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Allianz reports a 5-year dividend growth of 6.96% year and a payout ratio of 0.00%. On the other hand, QBE Insurance reports a 5-year dividend growth of 57.24% year and a payout ratio of 35.52%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Allianz P/E ratio at 1.23 and QBE Insurance's P/E ratio at 10.78. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Allianz P/B ratio is 0.20 while QBE Insurance's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Allianz has seen a 5-year revenue growth of 9.80%, while QBE Insurance's is 0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allianz's ROE at 17.69% and QBE Insurance's ROE at 17.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.50 for Allianz and $12.14 for QBE Insurance. Over the past year, Allianz's prices ranged from $26.00 to $33.19, with a yearly change of 27.65%. QBE Insurance's prices fluctuated between $9.12 and $13.35, with a yearly change of 46.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.