MQG and the fool seem critical of the NHF SP at the moment see below.
NIB Holdings Limited (ASX: NHF)
Although Macquarie likes both, I personally would choose Medibank over health insurance rival NIB Holdings at this point in time. Not only are NIB’s shares changing hands at 21x full year earnings, they are only expected to provide a fully franked 3.5% dividend in FY 2017. As far as I’m concerned the shares are looking a little on the expensive side right now and could be subject to declines in the months ahead as a result.
Suncorp Group Ltd (ASX: SUN)
Suncorp would have to be my pick of all of Australia’s insurers at the moment. It’s cheap price, strong dividend, and new operating model make it a great investment today in my eyes. The company has underperformed in recent years, but management appears confident that changes to its operating model will greatly improve the overall performance of the company. At 14x full year earnings and expected to pay a fully franked 6% dividend next year, its shares look to be in bargain territory to me.
Add to My Watchlist
What is My Watchlist?
