Critical Analysis: Admiral Group (AMIGY) and The Competition

Admiral Group (OTCMKTS:AMIGY) is one of 316 publicly-traded companies in the “Insurance” industry, but how does it compare to its peers? We will compare Admiral Group to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Institutional & Insider Ownership

0.0% of Admiral Group shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Insurance” companies are owned by institutional investors. 13.9% of shares of all “Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Admiral Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Admiral Group	N/A	N/A	N/A
Admiral Group Competitors	10.29%	11.05%	4.11%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Admiral Group and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Admiral Group	0	2	4	0	2.67
Admiral Group Competitors	3234	15321	16128	685	2.40

As a group, “Insurance” companies have a potential upside of 6.97%. Given Admiral Group’s peers higher possible upside, analysts clearly believe Admiral Group has less favorable growth aspects than its peers.

Dividends

Admiral Group pays an annual dividend of $0.69 per share and has a dividend yield of 1.3%. Admiral Group pays out 64.8% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 29.8% of their earnings in the form of a dividend. Admiral Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Admiral Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Admiral Group	N/A	N/A	50.90
Admiral Group Competitors	$15.71 billion	$1.69 billion	34.03

Admiral Group’s peers have higher revenue and earnings than Admiral Group. Admiral Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Admiral Group peers beat Admiral Group on 10 of the 13 factors compared.

Admiral Group Company Profile

Admiral Group plc, a financial services company, provides insurance and personal lending products in the United Kingdom, France, Italy, Spain, and the United States. It operates through four segments: UK Insurance, International Insurance, Admiral Money, and Other. The company offers underwriting services, which includes motor, household, pet, travel, and other insurance, as well as car and home insurance; and unsecured personal loans and car finance products. It provides its insurance product and services under the Admiral, Admiral Business, Admiral Money, Admiral Pioneer, Apparent Insurance, Balumba, Bell, Connect by Admiral, ConTe.it Assicurazioni, ConTe.it Prestiti, Diamond, Elephant, Elephant Auto, Gladiator, L'olivier assurance, Qualitas Auto, and Veygo brand names. Admiral Group plc was founded in 1993 and is headquartered in Cardiff, the United Kingdom.