Enstar Group (ESGR) vs. Its Rivals Critical Analysis

Enstar Group (NASDAQ: ESGR) is one of 22 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it contrast to its peers? We will compare Enstar Group to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, dividends and valuation.

Risk and Volatility

Enstar Group has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Enstar Group’s peers have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Earnings & Valuation

This table compares Enstar Group and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Enstar Group $1.13 billion $264.80 million 18.91
Enstar Group Competitors $11.04 billion $491.87 million -123.02

Enstar Group’s peers have higher revenue and earnings than Enstar Group. Enstar Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for Enstar Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Enstar Group Competitors 138 820 872 23 2.42

As a group, “Multiline Insurance & Brokers” companies have a potential downside of 4.28%. Given Enstar Group’s peers higher probable upside, analysts clearly believe Enstar Group has less favorable growth aspects than its peers.

Institutional & Insider Ownership

87.7% of Enstar Group shares are held by institutional investors. Comparatively, 62.3% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 9.9% of Enstar Group shares are held by company insiders. Comparatively, 15.5% of shares of all “Multiline Insurance & Brokers” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Enstar Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enstar Group 20.31% 6.91% 1.41%
Enstar Group Competitors 5.41% 11.46% 2.60%

Summary

Enstar Group peers beat Enstar Group on 7 of the 10 factors compared.

Enstar Group Company Profile

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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