Head to Head Contrast: Zurich Insurance Group (OTCMKTS:ZURVY) and Burford Capital (NYSE:BUR)

Zurich Insurance Group (OTCMKTS:ZURVY) and Burford Capital (NYSE:BUR) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Dividends

Zurich Insurance Group pays an annual dividend of $0.91 per share and has a dividend yield of 3.0%. Burford Capital pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Burford Capital pays out 8.4% of its earnings in the form of a dividend.

Volatility & Risk

Zurich Insurance Group has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Zurich Insurance Group and Burford Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zurich Insurance Group	N/A	N/A	N/A
Burford Capital	45.81%	12.58%	6.75%

Earnings and Valuation

This table compares Zurich Insurance Group and Burford Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zurich Insurance Group	$56.10 billion	0.79	$4.35 billion	N/A	N/A
Burford Capital	$563.24 million	5.30	$610.52 million	$1.43	9.53

Zurich Insurance Group has higher revenue and earnings than Burford Capital.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Zurich Insurance Group and Burford Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zurich Insurance Group	1	1	1	0	2.00
Burford Capital	0	0	3	0	3.00

Burford Capital has a consensus target price of $19.50, indicating a potential upside of 43.07%. Given Burford Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Burford Capital is more favorable than Zurich Insurance Group.

Institutional and Insider Ownership

0.0% of Zurich Insurance Group shares are held by institutional investors. 0.0% of Zurich Insurance Group shares are held by company insiders. Comparatively, 0.2% of Burford Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Burford Capital beats Zurich Insurance Group on 8 of the 14 factors compared between the two stocks.

About Zurich Insurance Group

Zurich Insurance Group AG, together with its subsidiaries, provides insurance products and related services in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific. The company operates through Property & Casualty Regions, Life Regions, Farmers, Group Functions and Operations, and Non-Core Businesses segments. It offers car and motor, home, travel, general liability, life and critical illness, and other insurance products; and saving and investment, and pension and retirement planning products. The company also provides property, casualty, energy and engineering lines, and marine; commercial management liability, financial institutions, and professional indemnity; and cyber, accident and health, and credit lines and surety insurance products, as well as and non-claims and ancillary services to the farmers exchanges. In addition, it offers employee benefit insurance products; and climate resilience, risk engineering, captive, and cyber resilience, as well as climate risk assessment and reinsurance services. The company serves individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. It sells its products through agents, brokers, and bank distribution channels. Zurich Insurance Group AG was founded in 1872 and is based in Zurich, Switzerland.

About Burford Capital

Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.