Assured Guaranty (AGO) versus Its Competitors Critical Review
Assured Guaranty (NYSE: AGO) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its competitors? We will compare Assured Guaranty to related businesses based on the strength of its dividends, analyst recommendations, valuation, earnings, institutional ownership, profitability and risk.
Volatility & Risk
Assured Guaranty has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Assured Guaranty’s competitors have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.
Insider and Institutional Ownership
97.0% of Assured Guaranty shares are owned by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 2.6% of Assured Guaranty shares are owned by company insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations for Assured Guaranty and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Assured Guaranty Competitors||622||2280||2170||45||2.32|
Assured Guaranty presently has a consensus price target of $47.00, suggesting a potential upside of 26.68%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.31%. Given Assured Guaranty’s stronger consensus rating and higher probable upside, equities analysts clearly believe Assured Guaranty is more favorable than its competitors.
Assured Guaranty pays an annual dividend of $0.57 per share and has a dividend yield of 1.5%. Assured Guaranty pays out 6.5% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 28.5% of their earnings in the form of a dividend. Assured Guaranty has raised its dividend for 5 consecutive years. Assured Guaranty is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Assured Guaranty and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Assured Guaranty||$1.54 billion||N/A||4.21|
|Assured Guaranty Competitors||$11.75 billion||$2.00 billion||39.55|
Assured Guaranty’s competitors have higher revenue and earnings than Assured Guaranty. Assured Guaranty is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares Assured Guaranty and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Assured Guaranty Competitors||9.69%||5.04%||2.66%|
Assured Guaranty beats its competitors on 10 of the 14 factors compared.
Assured Guaranty Company Profile
Assured Guaranty Ltd. is a holding company. The Company, through its subsidiaries, provides credit protection products to the United States and international public finance, including infrastructure, and structured finance markets. It applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. It guarantees obligations issued principally in the United States and the United Kingdom and also guarantees obligations issued in other countries and regions, including Australia and Western Europe. It also provides other forms of insurance that are in line with its risk profile and benefit from its underwriting experience.
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