Enstar Group (NASDAQ: ESGR) and Assurant (NYSE:AIZ) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Institutional and Insider Ownership
81.8% of Enstar Group shares are held by institutional investors. Comparatively, 93.0% of Assurant shares are held by institutional investors. 9.9% of Enstar Group shares are held by insiders. Comparatively, 0.8% of Assurant shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for Enstar Group and Assurant, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Assurant has a consensus price target of $115.00, indicating a potential upside of 30.64%. Given Assurant’s higher possible upside, analysts clearly believe Assurant is more favorable than Enstar Group.
Earnings and Valuation
This table compares Enstar Group and Assurant’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enstar Group||$1.11 billion||3.76||$311.45 million||$15.92||13.45|
|Assurant||$6.42 billion||0.72||$519.60 million||$9.40||9.36|
Assurant has higher revenue and earnings than Enstar Group. Assurant is trading at a lower price-to-earnings ratio than Enstar Group, indicating that it is currently the more affordable of the two stocks.
This table compares Enstar Group and Assurant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Assurant pays an annual dividend of $2.24 per share and has a dividend yield of 2.5%. Enstar Group does not pay a dividend. Assurant pays out 23.8% of its earnings in the form of a dividend. Enstar Group has raised its dividend for 14 consecutive years.
Risk & Volatility
Enstar Group has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Assurant has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Enstar Group beats Assurant on 10 of the 16 factors compared between the two stocks.
About Enstar Group
Enstar Group Limited is an insurance group that offers capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations. The Company’s segments include Non-Life Run-Off, Atrium, StarStone, and Life and Annuities. The Non-life Run-off segment comprises the operations of its subsidiaries that are running off their property and casualty and other non-life lines of business. The Atrium segment underwrites specialist marine, energy, aerospace, non-marine and liability classes. The StarStone segment offers a range of property, casualty and specialty insurance products. The Life and Annuities Segment consists of the operations managing the Company’s closed-block of life and annuity business, and its life settlements business.
Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.
Receive News & Ratings for Enstar Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enstar Group and related companies with MarketBeat.com's FREE daily email newsletter.