Critical Contrast: Everest Re Group (NYSE:RE) vs. Global Indemnity (NYSE:GBLI)
Everest Re Group (NYSE:RE) and Global Indemnity (NASDAQ:GBLI) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Earnings & Valuation
This table compares Everest Re Group and Global Indemnity’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Everest Re Group||$8.23 billion||1.44||$103.55 million||$21.34||13.65|
|Global Indemnity||$498.94 million||0.92||-$56.70 million||N/A||N/A|
Institutional and Insider Ownership
93.5% of Everest Re Group shares are owned by institutional investors. Comparatively, 55.4% of Global Indemnity shares are owned by institutional investors. 1.4% of Everest Re Group shares are owned by insiders. Comparatively, 42.1% of Global Indemnity shares are owned by 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.
Volatility and Risk
Everest Re Group has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Global Indemnity has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Everest Re Group pays an annual dividend of $6.20 per share and has a dividend yield of 2.1%. Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. Everest Re Group pays out 29.1% of its earnings in the form of a dividend. Everest Re Group has raised its dividend for 7 consecutive years.
This is a summary of current ratings for Everest Re Group and Global Indemnity, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Everest Re Group||0||7||1||0||2.13|
Everest Re Group presently has a consensus price target of $279.75, indicating a potential downside of 3.99%. Given Everest Re Group’s higher probable upside, equities research analysts plainly believe Everest Re Group is more favorable than Global Indemnity.
This table compares Everest Re Group and Global Indemnity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Everest Re Group||12.31%||9.95%||3.31%|
Everest Re Group beats Global Indemnity on 11 of the 15 factors compared between the two stocks.
About Everest Re Group
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the United States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States, Canada, and Europe. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker's compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.
About Global Indemnity
Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States and internationally. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under construction and renovation dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watersports primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was incorporated in 2016 and is based in George Town, the Cayman Islands.
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