Heritage Insurance Holdings (HRTG) vs. Montpelier Re Holdings (NYSE:MRH) Head to Head Survey

Heritage Insurance Holdings (NYSE: HRTG) and Montpelier Re Holdings (NYSE:MRH) are both small-cap property & casualty insurance – nec companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Valuation and Earnings

This table compares Heritage Insurance Holdings and Montpelier Re Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Heritage Insurance Holdings $438.96 million 0.95 $33.86 million $0.01 1,715.00
Montpelier Re Holdings N/A N/A N/A $3.84 11.09

Heritage Insurance Holdings has higher revenue and earnings than Montpelier Re Holdings. Montpelier Re Holdings is trading at a lower price-to-earnings ratio than Heritage Insurance Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Heritage Insurance Holdings and Montpelier Re Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Insurance Holdings 0 0 3 0 3.00
Montpelier Re Holdings 0 0 0 0 N/A

Heritage Insurance Holdings presently has a consensus target price of $18.00, indicating a potential upside of 4.96%. Given Heritage Insurance Holdings’ higher possible upside, equities analysts plainly believe Heritage Insurance Holdings is more favorable than Montpelier Re Holdings.

Dividends

Heritage Insurance Holdings pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Montpelier Re Holdings does not pay a dividend. Heritage Insurance Holdings pays out 2,400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Heritage Insurance Holdings has raised its dividend for 7 consecutive years.

Institutional & Insider Ownership

60.7% of Heritage Insurance Holdings shares are owned by institutional investors. 16.1% of Heritage Insurance Holdings shares 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 Heritage Insurance Holdings and Montpelier Re Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage Insurance Holdings 0.27% 0.31% 0.09%
Montpelier Re Holdings 35.71% 13.24% 6.70%

Summary

Heritage Insurance Holdings beats Montpelier Re Holdings on 7 of the 12 factors compared between the two stocks.

Heritage Insurance Holdings Company Profile

Heritage Insurance Holdings, Inc. (Heritage Insurance) is a property and casualty insurance holding company. The Company provides personal and commercial residential insurance. Through its subsidiary, Heritage Property & Casualty Insurance Company (Heritage P&C), it provides personal residential insurance for single-family homeowners and condominium owners, rental property insurance and commercial residential insurance in the state of Florida and North Carolina. The Company is vertically integrated and controls or manages all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. The Company’s primary products are personal and commercial residential insurance, which it offers only in Florida. As of December 31, 2016, it marketed and wrote personal lines voluntary policies through a network of approximately 1,900 independent agents. It had 150,998 voluntary personal residential policies as of December 31, 2016.

Montpelier Re Holdings Company Profile

Montpelier RE Holdings Ltd. is a holding company. The Company provides customized insurance and reinsurance solutions to the global market. Through its affiliates in Bermuda, it provides institutional and retail investors with direct access to the global property reinsurance market. It operates in three segments: Montpelier Bermuda, which consists of the assets and operations of Montpelier Reinsurance Ltd., which is its wholly owned operating subsidiary based in Pembroke, Bermuda and is registered as a Bermuda Class four insurer; Montpelier at Lloyd’s, which consists of the assets and operations of Montpelier Syndicate 5151, Montpelier Capital Limited, Montpelier at Lloyd’s Limited, Montpelier Underwriting Services Limited and Montpelier Underwriting Inc., and Collateralized Reinsurance, which is marketed under the name Blue Capital. Blue Capital is an asset management platform offering property catastrophe reinsurance-linked investment products to institutional and retail investors.

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