Head to Head Review: Axis Capital (AXS) and The Competition

Axis Capital (NYSE: AXS) is one of 73 public companies in the “Fire, marine, & casualty insurance” industry, but how does it contrast to its rivals? We will compare Axis Capital to related companies based on the strength of its institutional ownership, risk, analyst recommendations, dividends, valuation, profitability and earnings.

Volatility and Risk

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Axis Capital has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Axis Capital’s rivals have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Axis Capital and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axis Capital 0 6 2 0 2.25
Axis Capital Competitors 475 1877 1823 83 2.36

Axis Capital currently has a consensus target price of $60.88, indicating a potential upside of 6.56%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 1.44%. Given Axis Capital’s higher probable upside, equities research analysts plainly believe Axis Capital is more favorable than its rivals.

Profitability

This table compares Axis Capital and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axis Capital -8.04% -4.48% -0.98%
Axis Capital Competitors 3.22% 1.05% -0.01%

Dividends

Axis Capital pays an annual dividend of $1.56 per share and has a dividend yield of 2.7%. Axis Capital pays out -49.5% of its earnings in the form of a dividend. As a group, “Fire, marine, & casualty insurance” companies pay a dividend yield of 1.6% and pay out 82.3% of their earnings in the form of a dividend. Axis Capital has raised its dividend for 11 consecutive years. Axis Capital is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Axis Capital and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Axis Capital $4.59 billion -$368.96 million -18.14
Axis Capital Competitors $12.77 billion $1.43 billion 21.09

Axis Capital’s rivals have higher revenue and earnings than Axis Capital. Axis Capital 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.

Institutional & Insider Ownership

88.2% of Axis Capital shares are held by institutional investors. Comparatively, 61.9% of shares of all “Fire, marine, & casualty insurance” companies are held by institutional investors. 1.9% of Axis Capital shares are held by insiders. Comparatively, 13.7% of shares of all “Fire, marine, & casualty insurance” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Axis Capital rivals beat Axis Capital on 11 of the 15 factors compared.

Axis Capital Company Profile

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers property insurance for commercial buildings, residential premises, construction projects, and onshore energy installations; marine insurance covering offshore energy, cargo, liability, recreational marine, fine art, specie, hull, and war; and terrorism, aviation, credit and political risk, and liability insurance. It also provides professional lines insurance that cover directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, and not-for-profit organizations. In addition, this segment offers accidental death, travel, and specialty health products for employer and affinity groups, as well as accident and health reinsurance for catastrophic or per life events through wholesale and retail brokers, managing general agents, and underwriters. The Reinsurance segment offers reinsurance to insurance companies, including catastrophe; property reinsurance covering property damage and related losses resulting from natural and man-made perils; professional lines; and credit and surety. This segment also provides agriculture reinsurance; coverage for various types of construction risks and risks related to erection, testing, and commissioning of machinery and plants during the construction stage; marine, aviation, and personal accident reinsurance; and derivative based risk management products. The company was founded in 2001 and is headquartered in Pembroke, Bermuda.

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