Allstate (ALL) versus Alterra Capital (ALTE) Head to Head Survey

Allstate (NYSE: ALL) and Alterra Capital (NASDAQ:ALTE) are both financials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Allstate and Alterra Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allstate 8.28% 12.57% 2.26%
Alterra Capital N/A N/A N/A

Institutional & Insider Ownership

76.5% of Allstate shares are owned by institutional investors. 1.6% of Allstate 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.

Dividends

Allstate pays an annual dividend of $1.48 per share and has a dividend yield of 1.6%. Alterra Capital does not pay a dividend. Allstate pays out 17.7% of its earnings in the form of a dividend. Allstate has increased its dividend for 7 consecutive years.

Earnings & Valuation

This table compares Allstate and Alterra Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allstate $38.52 billion 0.88 $3.19 billion $8.37 11.35
Alterra Capital N/A N/A N/A $1.65 0.55

Allstate has higher revenue and earnings than Alterra Capital. Alterra Capital is trading at a lower price-to-earnings ratio than Allstate, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Allstate and Alterra Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allstate 2 7 4 0 2.15
Alterra Capital 0 0 0 0 N/A

Allstate presently has a consensus price target of $95.69, indicating a potential upside of 0.69%. Given Allstate’s higher probable upside, analysts plainly believe Allstate is more favorable than Alterra Capital.

Summary

Allstate beats Alterra Capital on 12 of the 13 factors compared between the two stocks.

About Allstate

The Allstate Corporation (Allstate) is a holding company for Allstate Insurance Company. The Company’s business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and other subsidiaries. It is engaged in the property-liability insurance business and the life insurance, retirement and investment products business. Its segments include Allstate Protection, Allstate Financial, Discontinued Lines and Coverages, and Corporate and Other. The Allstate Protection segment sells private passenger auto, homeowners, and other property-liability insurance products through agencies and directly through contact centers and the Internet. The Allstate Financial segment sells life insurance and voluntary accident and health insurance products. The Corporate and Other segment consists of holding company activities and certain non-insurance operations. Its Discontinued Lines and Coverages segment includes results from property-liability insurance coverage.

About Alterra Capital

Alterra Capital Holdings Limited (Alterra) is engaged in providing diversified specialty insurance and reinsurance products to corporations, public entities and property and casualty insurers. In Bermuda, the Company conducts its insurance and reinsurance operations through Alterra Bermuda. In Europe, the Company conducts its non-Lloyd’s operations primarily from Dublin, Ireland through Alterra Europe. In the United States, the Company’s U.S. reinsurance operations are conducted through Alterra Re USA, a Connecticut-domiciled reinsurance company. The Company’s U.S. insurance operations are conducted through Alterra E&S. In Latin America, the Company provides reinsurance to clients through Alterra at Lloyd’s in Rio de Janeiro, Brazil, using Lloyd’s admitted status, through Alterra Europe. In June 2012, the Company formed New Point V Limited. On May 1, 2013, Alterra Capital was acquired by Markel Corporation.

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