Head-To-Head Review: National General (NASDAQ:NGHC) vs. Its Peers

National General (NASDAQ: NGHC) is one of 22 public companies in the “Multiline Insurance & Brokers” industry, but how does it compare to its competitors? We will compare National General to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares National General and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National General 2.62% 7.30% 1.44%
National General Competitors 6.14% 11.23% 2.56%

Valuation & Earnings

This table compares National General and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
National General $3.55 billion $172.21 million 21.86
National General Competitors $11.13 billion $534.17 million 163.15

National General’s competitors have higher revenue and earnings than National General. National General 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.

Analyst Recommendations

This is a summary of recent ratings for National General and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National General 0 1 3 0 2.75
National General Competitors 112 803 849 21 2.44

National General presently has a consensus price target of $27.00, suggesting a potential upside of 27.36%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.61%. Given National General’s stronger consensus rating and higher possible upside, equities analysts plainly believe National General is more favorable than its competitors.

Insider and Institutional Ownership

45.6% of National General shares are held by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 3.4% of National General shares are held by company insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

National General has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, National General’s competitors have a beta of 1.27, indicating that their average share price is 27% more volatile than the S&P 500.

Dividends

National General pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. National General pays out 16.5% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 50.5% of their earnings in the form of a dividend.

Summary

National General competitors beat National General on 10 of the 15 factors compared.

About National General

National General Holdings Corp. is a specialty personal lines insurance holding company. Through its subsidiaries, the Company provides a range of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche products. It operates through two segments: Property and Casualty (P&C) and Accident and Health (A&H). Its P&C segment offers its P&C insurance products through a network of agents, a number of affinity partners and through direct-response marketing programs. Its A&H segment provides accident and non-major medical health insurance products targeting its existing P&C policyholders and the anticipated market of employed persons who are uninsured or underinsured. The P&C segment operates its business through three distribution channels: agency, affinity and direct. The A&H segment provides supplemental accident and health insurance products.

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