Reviewing Enstar Group (ESGR) & Fortegra Financial (FRF)

Enstar Group (NASDAQ: ESGR) and Fortegra Financial (NYSE:FRF) are both financials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Enstar Group and Fortegra Financial’s 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%
Fortegra Financial N/A N/A N/A

Valuation & Earnings

This table compares Enstar Group and Fortegra Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enstar Group $1.13 billion 3.37 $264.80 million $10.35 18.96
Fortegra Financial N/A N/A N/A $0.64 15.58

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

Institutional and Insider Ownership

88.8% of Enstar Group shares are held by institutional investors. 9.9% of Enstar Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Enstar Group and Fortegra Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Fortegra Financial 0 0 0 0 N/A

Risk & Volatility

Enstar Group has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Fortegra Financial has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

Enstar Group beats Fortegra Financial on 8 of the 9 factors compared between the two stocks.

Enstar Group Company Profile

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.

Fortegra Financial Company Profile

Fortegra Financial Corporation is specializing in insurance products and services. The Company’s business process outsourcing segment offers various administrative services under the Consecta and Pacific Benefits Group Northwest, LLC brand names to insurance and other financial services companies. The Company’s Payment Protection segment delivers credit insurance, debt protection, warranty and service contracts, and motor club solutions under the Life of the South, Continental Car Club, United Motor Club, and Auto Knight Motor Club brand names to consumer finance companies, regional banks, community banks, retailers, small loan companies, warranty administrators, automobile dealers, vacation ownership developers, and credit unions.

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