Blue Capital Reinsurance (NYSE:BCRH) and Loews (NYSE:L) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Valuation & Earnings
This table compares Blue Capital Reinsurance and Loews’ revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|Blue Capital Reinsurance
Loews has higher revenue and earnings than Blue Capital Reinsurance. Blue Capital Reinsurance is trading at a lower price-to-earnings ratio than Loews, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Blue Capital Reinsurance and Loews, as provided by MarketBeat.com.
||Strong Buy Ratings
|Blue Capital Reinsurance
Blue Capital Reinsurance currently has a consensus price target of $11.00, suggesting a potential upside of 36.48%. Loews has a consensus price target of $69.00, suggesting a potential upside of 32.62%. Given Blue Capital Reinsurance’s higher possible upside, equities research analysts plainly believe Blue Capital Reinsurance is more favorable than Loews.
Blue Capital Reinsurance pays an annual dividend of $0.60 per share and has a dividend yield of 7.4%. Loews pays an annual dividend of $0.25 per share and has a dividend yield of 0.5%. Blue Capital Reinsurance pays out -18.3% of its earnings in the form of a dividend. Loews pays out 8.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Blue Capital Reinsurance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Blue Capital Reinsurance has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Loews has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
This table compares Blue Capital Reinsurance and Loews’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Blue Capital Reinsurance
Insider & Institutional Ownership
41.5% of Blue Capital Reinsurance shares are held by institutional investors. Comparatively, 62.8% of Loews shares are held by institutional investors. 0.1% of Blue Capital Reinsurance shares are held by company insiders. Comparatively, 14.2% of Loews shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Loews beats Blue Capital Reinsurance on 11 of the 16 factors compared between the two stocks.
Blue Capital Reinsurance Company Profile
Blue Capital Reinsurance Holdings Ltd., through its subsidiaries, provides collateralized reinsurance in the property catastrophe market in the United States and internationally. It also invests in various insurance-linked securities. The company was founded in 2013 and is headquartered in Pembroke, Bermuda.
Loews Company Profile
Loews Corporation, through its subsidiaries, provides commercial property and casualty insurance in the United States and internationally. It operates through CNA Financial Corporation; Diamond Offshore Drilling, Inc.; Boardwalk Pipeline Partners, LP; and Loews Hotels Holding Corporation segments. The company offers specialty insurance products, such as management and professional liability insurance coverages and products; surety and fidelity bonds; and warranty and alternative risk services. It also provides commercial property insurance products include standard and excess property, marine, and boiler and machinery coverages; casualty insurance products comprise workers' compensation, general and product liability, commercial auto, and umbrella coverages; and loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services primarily through independent agents, brokers, and managing general underwriters. In addition, the company offers contract drilling services through a fleet of 17 offshore drilling rigs consisting of 4 drillships and 13 semisubmersible rigs. Further, it is involved in the transportation and storage of natural gas and natural gas liquids (NGLs). It owns and operates natural gas pipelines covering approximately 13,805 miles of interconnected pipelines; approximately 455 miles of NGL pipelines in Louisiana and Texas; and 14 underground storage fields with aggregate working gas capacity of approximately 205 billion cubic feet of natural gas. Additionally, it operates a chain of 24 hotels in the United States and Canada. The company was incorporated in 1969 and is headquartered in New York, New York.
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