Assurant (NYSE: AIZ) and Enstar Group (NASDAQ:ESGR) are both mid-cap financials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Risk and Volatility
Assurant has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Enstar Group has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
Earnings & Valuation
This table compares Assurant and Enstar Group’s revenue, earnings per share and valuation.
||Earnings Per Share
Assurant has higher revenue and earnings than Enstar Group. Enstar Group is trading at a lower price-to-earnings ratio than Assurant, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
93.0% of Assurant shares are owned by institutional investors. Comparatively, 81.8% of Enstar Group shares are owned by institutional investors. 0.8% of Assurant shares are owned by company insiders. Comparatively, 9.9% of Enstar Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Assurant and Enstar Group, as reported by MarketBeat.
||Strong Buy Ratings
Assurant currently has a consensus target price of $115.00, indicating a potential upside of 29.07%. Given Assurant’s higher possible upside, equities research analysts clearly believe Assurant is more favorable than Enstar Group.
This table compares Assurant and Enstar Group’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Assurant pays an annual dividend of $2.24 per share and has a dividend yield of 2.5%. Enstar Group does not pay a dividend. Assurant pays out 36.6% of its earnings in the form of a dividend. Enstar Group has increased its dividend for 14 consecutive years.
Enstar Group beats Assurant on 9 of the 16 factors compared between the two stocks.
Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.
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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