AmTrust Financial Services (AFSI) vs. Its Peers Head-To-Head Analysis

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

Dividends

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AmTrust Financial Services pays an annual dividend of $0.68 per share and has a dividend yield of 5.4%. AmTrust Financial Services pays out 25.8% of its earnings in the form of a dividend. As a group, “Fire, marine, & casualty insurance” companies pay a dividend yield of 1.5% and pay out 81.8% of their earnings in the form of a dividend. AmTrust Financial Services is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility and Risk

AmTrust Financial Services has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, AmTrust Financial Services’ rivals have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

29.3% of AmTrust Financial Services shares are owned by institutional investors. Comparatively, 60.9% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 50.8% of AmTrust Financial Services shares are owned by company insiders. Comparatively, 13.5% of shares of all “Fire, marine, & casualty insurance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for AmTrust Financial Services and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmTrust Financial Services 0 6 0 0 2.00
AmTrust Financial Services Competitors 472 1897 1833 83 2.36

AmTrust Financial Services presently has a consensus price target of $14.17, indicating a potential upside of 12.61%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 5.31%. Given AmTrust Financial Services’ higher possible upside, equities analysts clearly believe AmTrust Financial Services is more favorable than its rivals.

Profitability

This table compares AmTrust Financial Services and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmTrust Financial Services -5.67% -3.33% -0.36%
AmTrust Financial Services Competitors 2.83% 0.53% -0.17%

Valuation and Earnings

This table compares AmTrust Financial Services and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AmTrust Financial Services $5.96 billion -$348.88 million 4.77
AmTrust Financial Services Competitors $12.77 billion $1.43 billion 21.22

AmTrust Financial Services’ rivals have higher revenue and earnings than AmTrust Financial Services. AmTrust Financial Services 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.

Summary

AmTrust Financial Services rivals beat AmTrust Financial Services on 10 of the 15 factors compared.

AmTrust Financial Services Company Profile

AmTrust Financial Services, Inc. provides property and casualty insurance in the United States and internationally. The company operates in three segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program. The Small Commercial Business segment offers workers' compensation insurance products; and commercial package, and other property and casualty insurance products, such as commercial property, general liability, inland marine, employment practices liability, commercial automobile, and umbrella coverage to small businesses. The Specialty Risk and Extended Warranty segment provides custom designed coverages, such as accidental damage plans, mechanical breakdown protection, and payment protection plans in connection with the sale of consumer and commercial goods; and coverage for niche property, casualty, and specialty liability risks comprising general liability, employers' liability, and professional and medical liability. The Specialty Program segment offers workers' compensation, general liability, commercial auto liability, property coverage, excess and surplus lines programs, and other specialty commercial property and casualty insurance products to small and middle market companies. The company also provides reinsurance services primarily for personal and commercial automotive business. It distributes its policies third-party brokers, agents, retailers, or administrators. AmTrust Financial Services, Inc. was founded in 1998 and is based in New York, New York.

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