Financial Contrast: MBIA (MBI) versus Enstar Gr (ESGR)

MBIA (NYSE: MBI) and Enstar Gr (NASDAQ:ESGR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Profitability

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This table compares MBIA and Enstar Gr’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MBIA -370.67% -19.69% -4.16%
Enstar Gr 28.14% 10.00% 2.07%



Valuation and Earnings

This table compares MBIA and Enstar Gr’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MBIA $433.00 million 1.81 -$1.61 billion N/A N/A
Enstar Gr $1.11 billion 3.78 $311.45 million N/A N/A

Enstar Gr has higher revenue and earnings than MBIA.

Institutional and Insider Ownership

81.8% of Enstar Gr shares are held by institutional investors. 3.1% of MBIA shares are held by company insiders. Comparatively, 9.9% of Enstar Gr shares 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.

Volatility and Risk

MBIA has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Enstar Gr has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for MBIA and Enstar Gr, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MBIA 0 1 2 0 2.67
Enstar Gr 0 0 0 0 N/A

MBIA presently has a consensus price target of $14.50, indicating a potential upside of 63.84%. Given MBIA’s higher probable upside, research analysts clearly believe MBIA is more favorable than Enstar Gr.

Summary

Enstar Gr beats MBIA on 8 of the 11 factors compared between the two stocks.

MBIA Company Profile

MBIA, Inc. operates as holding company, which through its subsidiaries, provides financial guarantee insurance, as well as related reinsurance, advisory and portfolio services and asset management advisory services, for the public and structured finance markets. It operates through the following business segments: U.S. Public Finance Insurance, Corporate, International and Structured Finance Insurance. The U.S. Public Finance Insurance segment is principally conducted through National. National issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. The Corporate segment consists of general corporate activities, including providing general support services to MBIA’s other operating businesses and asset and capital management. The International and Structured Finance Insurance segment is conducted through the MBIA Corp. The company was founded in 1973 and is headquartered in Purchase, NY.

Enstar Gr Company Profile

Enstar Group Limited acquires and manages insurance and reinsurance companies, and portfolios of insurance and reinsurance business in run-off. It operates in three segments: Non-Life Run-Off, Atrium, and StarStone. The Non-Life Run-Off segment engages in the running off property and casualty, and other non-life lines of businesses. It also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, and IT consulting services to the insurance and reinsurance industry. The Atrium segment is involved in underwriting various classes, including marine, aviation, transit, property and casualty binding authorities, reinsurance, accident and health, and non marine direct and facultative. The StarStone segment offers a range of property, casualty, and specialty insurance products to large multi-national, and small and middle-market clients. The company operates in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and internationally. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited as a result of its merger with The Enstar Group, Inc. in January 2007. Enstar Group Limited was founded in 2001 and is headquartered in Hamilton, Bermuda.

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