Reviewing W.R. Berkley Corporation (WRB) and Atlas Financial Holdings (AFH)

W.R. Berkley Corporation (NYSE: WRB) and Atlas Financial Holdings (NASDAQ:AFH) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Dividends

W.R. Berkley Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Atlas Financial Holdings does not pay a dividend. W.R. Berkley Corporation pays out 11.8% of its earnings in the form of a dividend. Atlas Financial Holdings has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for W.R. Berkley Corporation and Atlas Financial Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W.R. Berkley Corporation 0 9 1 0 2.10
Atlas Financial Holdings 0 0 3 0 3.00

W.R. Berkley Corporation currently has a consensus price target of $68.00, suggesting a potential downside of 3.64%. Atlas Financial Holdings has a consensus price target of $18.50, suggesting a potential downside of 7.27%. Given W.R. Berkley Corporation’s higher probable upside, analysts clearly believe W.R. Berkley Corporation is more favorable than Atlas Financial Holdings.

Volatility & Risk

W.R. Berkley Corporation has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Atlas Financial Holdings has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares W.R. Berkley Corporation and Atlas Financial Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
W.R. Berkley Corporation $7.71 billion 1.11 $1.15 billion $4.73 14.92
Atlas Financial Holdings $197.16 million 1.22 -$1.70 million $0.23 86.74

W.R. Berkley Corporation has higher revenue and earnings than Atlas Financial Holdings. W.R. Berkley Corporation is trading at a lower price-to-earnings ratio than Atlas Financial Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares W.R. Berkley Corporation and Atlas Financial Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
W.R. Berkley Corporation 7.86% 7.58% 1.66%
Atlas Financial Holdings 1.67% -3.32% -1.03%

Insider and Institutional Ownership

71.2% of W.R. Berkley Corporation shares are owned by institutional investors. Comparatively, 79.1% of Atlas Financial Holdings shares are owned by institutional investors. 22.1% of W.R. Berkley Corporation shares are owned by insiders. Comparatively, 12.7% of Atlas Financial Holdings 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.

Summary

W.R. Berkley Corporation beats Atlas Financial Holdings on 9 of the 17 factors compared between the two stocks.

W.R. Berkley Corporation Company Profile

W. R. Berkley Corporation is an insurance holding company. It operates through two segments: Insurance and Reinsurance-Global. The Insurance segment consists of its commercial insurance business operations, comprising excess and surplus lines, and admitted lines, throughout the United States, as well as its insurance business operations in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia. Its Insurance segment comprises business units, such as Acadia Insurance, American Mining Insurance Group, Berkley Accident and Health, Berkley Agribusiness Risk Specialists, Berkley Aviation and Berkley Canada. Reinsurance consists of its reinsurance business on a facultative and treaty basis, in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa. Its Reinsurance segment comprises business units, such as Berkley Re America, Berkley Re Asia Pacific, Berkley Re Direct and Berkley Re UK.

Atlas Financial Holdings Company Profile

Atlas Financial Holdings Inc formerly JJR VI Acquisition Corp is a Canada-based company. It is engaged in the business of providing commercial automobile insurance in the United States with a niche market orientation. The Company’s automobile insurance products provide coverage in three areas: liability, accident benefits and physical damage. Liability insurance provides coverage where the insured is responsible for an automobile accident, for the payment for injuries and property damage to third parties. Accident benefit policies or personal injury protection policies provide coverage for loss of income, medical and rehabilitation expenses for insured persons who are injured in an automobile accident, Physical damage coverages provide for the payment of damages to an insured automobile arising from a collision with another object or from other risks. In January 2013, the Company acquired Camelot Services Inc. and its insurance subsidiary, Gateway Insurance Company.

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