Essent Group (NYSE: ESNT) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it contrast to its peers? We will compare Essent Group to similar companies based on the strength of its earnings, institutional ownership, valuation, dividends, risk, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Essent Group 50.92% 18.77% 13.32%
Essent Group Competitors 9.69% 5.04% 2.66%

Volatility & Risk

Essent Group has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Essent Group’s peers have a beta of 0.93, meaning that their average share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Essent Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essent Group 0 1 6 0 2.86
Essent Group Competitors 622 2280 2170 45 2.32

Essent Group currently has a consensus target price of $44.86, suggesting a potential upside of 5.25%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.31%. Given Essent Group’s stronger consensus rating and higher probable upside, analysts plainly believe Essent Group is more favorable than its peers.

Earnings and Valuation

This table compares Essent Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Essent Group $512.83 million $362.45 million 15.11
Essent Group Competitors $11.75 billion $2.00 billion 39.55

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

Institutional & Insider Ownership

81.6% of Essent Group shares are held by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 18.1% of Essent Group shares are held by company insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Essent Group beats its peers on 9 of the 13 factors compared.

About Essent Group

Essent Group Ltd. is a private mortgage insurance company. The Company is engaged in offering private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its products and services include mortgage insurance, contract underwriting, and Bermuda-based insurance and reinsurance. The Company’s primary mortgage insurance is offered to customers on individual loans at the time of origination on a flow basis, but can also be written in bulk transactions. Its pool insurance provides additional credit enhancement for certain secondary market and other mortgage transactions. The primary mortgage insurance operations were conducted through Essent Guaranty, Inc. which is a mortgage insurer licensed to write mortgage insurance in all 50 states and the District of Columbia, as of December 31, 2016. It offers primary mortgage insurance, pool insurance and master policy. It provides contract underwriting services through CUW Solutions, LLC.

Receive News & Ratings for Essent Group Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Essent Group Ltd. and related companies with Analyst Ratings Network's FREE daily email newsletter.