Analyzing Enstar Group (NASDAQ:ESGR) and Its Competitors

Enstar Group (NASDAQ: ESGR) is one of 21 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it contrast to its rivals? We will compare Enstar Group to related companies based on the strength of its earnings, profitability, dividends, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares Enstar Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enstar Group 20.31% 6.91% 1.41%
Enstar Group Competitors 5.08% 11.46% 2.62%

Volatility & Risk

Enstar Group has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Enstar Group’s rivals have a beta of 1.44, indicating that their average stock price is 44% more volatile than the S&P 500.

Valuation and Earnings

This table compares Enstar Group and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Enstar Group $1.13 billion $264.80 million 18.86
Enstar Group Competitors $11.04 billion -$139.96 million 81.14

Enstar Group’s rivals have higher revenue, but lower earnings than Enstar Group. Enstar Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

87.6% of Enstar Group shares are held by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 9.9% of Enstar Group 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, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Enstar Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Enstar Group Competitors 111 674 746 23 2.44

As a group, “Multiline Insurance & Brokers” companies have a potential upside of 5.58%. Given Enstar Group’s rivals higher possible upside, analysts clearly believe Enstar Group has less favorable growth aspects than its rivals.

Summary

Enstar Group rivals beat Enstar Group on 7 of the 10 factors compared.

About Enstar Group

Enstar Group Limited is an insurance group that offers capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations. The Company’s segments include Non-Life Run-Off, Atrium, StarStone, and Life and Annuities. The Non-life Run-off segment comprises the operations of its subsidiaries that are running off their property and casualty and other non-life lines of business. The Atrium segment underwrites specialist marine, energy, aerospace, non-marine and liability classes. The StarStone segment offers a range of property, casualty and specialty insurance products. The Life and Annuities Segment consists of the operations managing the Company’s closed-block of life and annuity business, and its life settlements business.

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