Contrasting Third Point Reinsurance (TPRE) & EMC Insurance Group (EMCI)

Third Point Reinsurance (NYSE: TPRE) and EMC Insurance Group (NASDAQ:EMCI) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Volatility & Risk

Third Point Reinsurance has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, EMC Insurance Group has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Dividends

EMC Insurance Group pays an annual dividend of $0.88 per share and has a dividend yield of 3.5%. Third Point Reinsurance does not pay a dividend. EMC Insurance Group pays out 72.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Third Point Reinsurance and EMC Insurance Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Third Point Reinsurance $939.01 million 1.46 $277.79 million $2.63 5.10
EMC Insurance Group $652.29 million 0.84 $39.23 million $1.22 20.77

Third Point Reinsurance has higher revenue and earnings than EMC Insurance Group. Third Point Reinsurance is trading at a lower price-to-earnings ratio than EMC Insurance Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Third Point Reinsurance and EMC Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Third Point Reinsurance 18.16% 9.08% 3.26%
EMC Insurance Group 4.86% 3.92% 1.38%

Insider & Institutional Ownership

77.1% of Third Point Reinsurance shares are owned by institutional investors. Comparatively, 28.3% of EMC Insurance Group shares are owned by institutional investors. 12.1% of Third Point Reinsurance shares are owned by insiders. Comparatively, 2.9% of EMC Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Third Point Reinsurance and EMC Insurance Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Third Point Reinsurance 0 1 2 0 2.67
EMC Insurance Group 0 2 0 0 2.00

Third Point Reinsurance currently has a consensus target price of $17.67, suggesting a potential upside of 31.84%. EMC Insurance Group has a consensus target price of $28.00, suggesting a potential upside of 10.50%. Given Third Point Reinsurance’s stronger consensus rating and higher possible upside, analysts plainly believe Third Point Reinsurance is more favorable than EMC Insurance Group.

Summary

Third Point Reinsurance beats EMC Insurance Group on 14 of the 16 factors compared between the two stocks.

Third Point Reinsurance Company Profile

Third Point Reinsurance Ltd., through its subsidiaries, provides specialty property and casualty reinsurance products to insurance and reinsurance companies worldwide. It underwrites homeowners, workers compensation, personal automobile, mortgage, and multi-line reinsurance; professional, transactional, and general liability reinsurance; and marine, travel, and extended warranty reinsurance products. The company was incorporated in 2011 and is based in Pembroke, Bermuda.

EMC Insurance Group Company Profile

EMC Insurance Group, Inc. is an insurance holding company, which engages in the operation and sale of commercial lines of property and casualty insurance to small and medium-sized businesses. It operates through Property and Casualty Insurance, and Reinsurance segments. The Property and Casualty Insurance segment includes both commercial and personal lines of insurance with a focus on medium-sized commercial accounts. The Reinsurance segment offers reinsurance for other insurers and reinsurers. The company was founded in 1974 and is headquartered in Des Moines, IA.

Receive News & Ratings for Third Point Reinsurance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Third Point Reinsurance and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply