Endurance Specialty (ENH) & Cna Financial (CNA) Head-To-Head Review

Endurance Specialty (NYSE: ENH) and Cna Financial (NYSE:CNA) are both mid-cap financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

82.7% of Endurance Specialty shares are held by institutional investors. Comparatively, 99.7% of Cna Financial shares are held by institutional investors. 5.8% of Endurance Specialty shares are held by company insiders. Comparatively, 0.5% of Cna Financial shares 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.

Valuation and Earnings

This table compares Endurance Specialty and Cna Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endurance Specialty N/A N/A N/A $4.93 18.86
Cna Financial $9.37 billion 1.53 $859.00 million $3.37 15.65

Cna Financial has higher revenue and earnings than Endurance Specialty. Cna Financial is trading at a lower price-to-earnings ratio than Endurance Specialty, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Endurance Specialty and Cna Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endurance Specialty 0 0 0 0 N/A
Cna Financial 0 2 0 0 2.00

Cna Financial has a consensus price target of $50.50, suggesting a potential downside of 4.23%. Given Cna Financial’s higher probable upside, analysts clearly believe Cna Financial is more favorable than Endurance Specialty.

Profitability

This table compares Endurance Specialty and Cna Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endurance Specialty 4.41% 1.29% 0.72%
Cna Financial 9.67% 7.14% 1.53%

Dividends

Endurance Specialty pays an annual dividend of $1.52 per share and has a dividend yield of 1.6%. Cna Financial pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Endurance Specialty pays out 30.8% of its earnings in the form of a dividend. Cna Financial pays out 35.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cna Financial has increased its dividend for 7 consecutive years. Cna Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Cna Financial beats Endurance Specialty on 8 of the 12 factors compared between the two stocks.

Endurance Specialty Company Profile

Endurance Specialty Holdings Ltd. is a holding company. The Company, through its operating subsidiaries in Bermuda, the United States and the United Kingdom, focuses on underwriting specialty lines of personal and commercial property, and casualty insurance and reinsurance. It operates through two segments: Insurance and Reinsurance. In the Insurance segment, it writes agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation insurance. In the Reinsurance segment, it writes catastrophe, property, casualty, professional lines and specialty reinsurance. Its Insurance and Reinsurance segments both include property-related coverages, which provide insurance or reinsurance of an insurable interest in tangible property for property loss, damage or loss of use. In addition, its Insurance and Reinsurance segments include various casualty insurance and reinsurance coverages, which are concerned with the losses caused by injuries to third parties.

Cna Financial Company Profile

CNA Financial Corporation is an insurance holding company. The Company’s segments include Specialty, Commercial, International, Life & Group Non-Core, and Corporate & Other Non-Core. Its Specialty segment provides a range of professional, financial, and specialty property, and casualty products and services. The Commercial segment includes property and casualty insurance products and services to small, middle-market and large businesses. Its International segment provides management and professional liability coverages, as well as a range of other property and casualty insurance products and services. The Life & Group Non-Core segment primarily includes the results of its individual and group long term care businesses that are in run-off. Its Corporate & Other Non-Core segment primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off.

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