Aspen Insurance Holdings Limited (NYSE: AHL) and Everest Re Group (NYSE:RE) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitabiliy, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Aspen Insurance Holdings Limited and Everest Re Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aspen Insurance Holdings Limited 0 1 0 0 2.00
Everest Re Group 2 4 1 0 1.86

Aspen Insurance Holdings Limited currently has a consensus price target of $55.00, indicating a potential upside of 7.84%. Everest Re Group has a consensus price target of $241.00, indicating a potential downside of 10.45%. Given Aspen Insurance Holdings Limited’s stronger consensus rating and higher probable upside, research analysts plainly believe Aspen Insurance Holdings Limited is more favorable than Everest Re Group.

Valuation & Earnings

This table compares Aspen Insurance Holdings Limited and Everest Re Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aspen Insurance Holdings Limited $2.79 billion 1.10 $293.20 million $2.24 22.77
Everest Re Group $6.04 billion 1.83 $1.10 billion $26.88 10.01

Everest Re Group has higher revenue and earnings than Aspen Insurance Holdings Limited. Everest Re Group is trading at a lower price-to-earnings ratio than Aspen Insurance Holdings Limited, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

91.8% of Aspen Insurance Holdings Limited shares are held by institutional investors. Comparatively, 92.3% of Everest Re Group shares are held by institutional investors. 1.3% of Aspen Insurance Holdings Limited shares are held by insiders. Comparatively, 1.3% of Everest Re Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Aspen Insurance Holdings Limited pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Everest Re Group pays an annual dividend of $5.00 per share and has a dividend yield of 1.9%. Aspen Insurance Holdings Limited pays out 42.9% of its earnings in the form of a dividend. Everest Re Group pays out 18.6% 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. Aspen Insurance Holdings Limited has increased its dividend for 5 consecutive years and Everest Re Group has increased its dividend for 4 consecutive years. Aspen Insurance Holdings Limited is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Aspen Insurance Holdings Limited and Everest Re Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aspen Insurance Holdings Limited 6.91% 3.97% 1.22%
Everest Re Group 18.49% 12.70% 4.77%

Risk & Volatility

Aspen Insurance Holdings Limited has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Everest Re Group has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Summary

Everest Re Group beats Aspen Insurance Holdings Limited on 10 of the 17 factors compared between the two stocks.

Aspen Insurance Holdings Limited Company Profile

Aspen Insurance Holdings Limited is a holding company. The Company underwrites specialty insurance and reinsurance on a global basis. It manages its business as two business segments: Aspen Insurance and Aspen Reinsurance (Aspen Re). The reinsurance segment consists of property catastrophe reinsurance (including the business written through Aspen Capital Markets), other property reinsurance (risk excess, pro rata and facultative), casualty reinsurance (U.S. treaty, international treaty and global facultative) and specialty reinsurance (credit and surety, agriculture insurance and reinsurance, marine, aviation, terrorism, engineering and other specialty lines). The insurance segment consists of property and casualty insurance; marine, aviation and energy insurance, and financial and professional lines insurance. Aspen Re participates in alternative reinsurance market through Aspen Capital Markets, which is part of property catastrophe reinsurance line of business.

Everest Re Group Company Profile

Everest Re Group, Ltd., through its subsidiaries, is engaged in the underwriting of reinsurance and insurance in the United States, Bermuda and international markets. The Company operates in segments: U.S. Reinsurance, International, Bermuda and Insurance segment. The Company underwrites reinsurance both through brokers and directly with ceding companies. The Company underwrites insurance principally through general agent relationships, brokers and surplus lines brokers. The Company offers treaty and facultative reinsurance, and admitted and non-admitted insurance. Its products include the range of property and casualty reinsurance, and insurance coverage’s, including marine, aviation, surety, errors and omissions liability (E&O), directors’ and officers’ liability (D&O), medical malpractice, other specialty lines, accident and health (A&H) and workers’ compensation. Its subsidiaries include Everest Reinsurance (Bermuda), Ltd. (Bermuda Re) and Everest International Reinsurance, Ltd.

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