Comparing Navigators Group (NASDAQ:NAVG) & White Mountains Insurance Group (WTM)

White Mountains Insurance Group (NYSE: WTM) and Navigators Group (NASDAQ:NAVG) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

White Mountains Insurance Group has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Navigators Group has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for White Mountains Insurance Group and Navigators Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
White Mountains Insurance Group 0 0 0 0 N/A
Navigators Group 1 2 1 0 2.00

Navigators Group has a consensus price target of $51.50, suggesting a potential upside of 4.99%. Given Navigators Group’s higher possible upside, analysts plainly believe Navigators Group is more favorable than White Mountains Insurance Group.

Institutional and Insider Ownership

81.9% of White Mountains Insurance Group shares are owned by institutional investors. Comparatively, 74.0% of Navigators Group shares are owned by institutional investors. 5.1% of White Mountains Insurance Group shares are owned by insiders. Comparatively, 24.1% of Navigators Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares White Mountains Insurance Group and Navigators Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
White Mountains Insurance Group 69.96% 1.32% 0.82%
Navigators Group 2.79% 2.32% 0.56%

Valuation & Earnings

This table compares White Mountains Insurance Group and Navigators Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
White Mountains Insurance Group $1.36 billion 2.30 $412.50 million $134.40 6.21
Navigators Group $1.20 billion 1.21 $82.72 million $1.15 42.65

White Mountains Insurance Group has higher revenue and earnings than Navigators Group. White Mountains Insurance Group is trading at a lower price-to-earnings ratio than Navigators Group, indicating that it is currently the more affordable of the two stocks.

Dividends

White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. Navigators Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. White Mountains Insurance Group pays out 0.7% of its earnings in the form of a dividend. Navigators Group pays out 20.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

White Mountains Insurance Group beats Navigators Group on 8 of the 15 factors compared between the two stocks.

White Mountains Insurance Group Company Profile

White Mountains Insurance Group, Ltd. is a holding company. The Company’s principal businesses are conducted through its insurance subsidiaries and other affiliates. Its segments include HG Global/BAM and Other Operations. The HG Global/BAM segment consists of the operations of HG Global Ltd. (HG Global) and Build America Mutual Assurance Company (BAM). The Other Operations segment consists of the Company and its intermediate holding companies, its investment management subsidiary, White Mountains Advisors LLC, and certain consolidated and unconsolidated private capital investments.

Navigators Group Company Profile

The Navigators Group, Inc. is an insurance holding company. The Company is an international insurance company focused on marine insurance. The Company’s segments include U.S. Insurance, International Insurance (Int’l Insurance), Global Reinsurance (GlobalRe) and Corporate. The Company’s Property and Casualty (P&C) insurance business primarily offers general liability coverage, and umbrella and excess liability coverage to commercial enterprises through its U.S. Insurance and Int’l Insurance segments. It also offers reinsurance products through its GlobalRe segment. It distributes its products through international, national and regional, retail and wholesale insurance brokers. The Company’s U.S. Insurance and Int’l Insurance segments consists of three segments, such as Marine, Property and Casualty (P&C) and Professional Liability. Its GlobalRe products include accident & health (A&H), marine, P&C and professional liability.

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