Blue Capital Reinsurance Holdings (NYSE: BCRH) and Maiden Holdings (NASDAQ:MHLD) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitabiliy and dividends.

Risk and Volatility

Blue Capital Reinsurance Holdings has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Maiden Holdings has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Dividends

Blue Capital Reinsurance Holdings pays an annual dividend of $1.20 per share and has a dividend yield of 6.0%. Maiden Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 5.4%. Blue Capital Reinsurance Holdings pays out 65.6% of its earnings in the form of a dividend. Maiden Holdings pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blue Capital Reinsurance Holdings is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for Blue Capital Reinsurance Holdings and Maiden Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Capital Reinsurance Holdings 0 1 0 0 2.00
Maiden Holdings 0 0 3 0 3.00

Maiden Holdings has a consensus target price of $16.25, indicating a potential upside of 46.40%. Given Maiden Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Maiden Holdings is more favorable than Blue Capital Reinsurance Holdings.

Insider & Institutional Ownership

40.2% of Blue Capital Reinsurance Holdings shares are owned by institutional investors. Comparatively, 66.5% of Maiden Holdings shares are owned by institutional investors. 0.1% of Blue Capital Reinsurance Holdings shares are owned by insiders. Comparatively, 10.0% of Maiden Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Blue Capital Reinsurance Holdings and Maiden Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Capital Reinsurance Holdings 38.93% 8.84% 7.76%
Maiden Holdings 1.37% 3.41% 0.59%

Earnings and Valuation

This table compares Blue Capital Reinsurance Holdings and Maiden Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blue Capital Reinsurance Holdings $42.10 million 4.13 $16.02 million $1.83 10.85
Maiden Holdings $2.83 billion 0.34 $73.85 million $0.15 74.00

Maiden Holdings has higher revenue and earnings than Blue Capital Reinsurance Holdings. Blue Capital Reinsurance Holdings is trading at a lower price-to-earnings ratio than Maiden Holdings, indicating that it is currently the more affordable of the two stocks.

Summary

Maiden Holdings beats Blue Capital Reinsurance Holdings on 9 of the 16 factors compared between the two stocks.

About Blue Capital Reinsurance Holdings

Blue Capital Reinsurance Holdings Ltd. provides collateralized reinsurance in the property catastrophe market and invests in various insurance-linked securities. The Company conducts its operations through its subsidiaries, including Blue Capital Re Ltd. (Blue Capital Re), which provides collateralized reinsurance, and Blue Capital Re ILS Ltd. (Blue Capital Re ILS), which conducts hedging and other investment activities. Blue Capital Re provides reinsurance to third-party insurance and reinsurance companies through reinsurance contracts, either directly with the cedant or on a fronted basis. Blue Capital Re ILS may purchase catastrophe bonds to access certain risks. Blue Capital Re or Blue Capital Re ILS may buy and sell industry loss warranties as a way to access certain risks. Blue Capital Re ILS’ portfolio may include over-the-counter or exchange-traded futures or options listed on catastrophe indexes, such as catastrophe or weather derivatives.

About Maiden Holdings

Maiden Holdings, Ltd. (Maiden) is a holding company. The Company focuses on serving the needs of regional and specialty insurers in the United States, Europe and select other global markets by providing reinsurance solutions designed to support their capital needs. It operates through two segments: Diversified Reinsurance and AmTrust Reinsurance. The Diversified Reinsurance segment consists of a portfolio of property and casualty reinsurance business focusing on regional and specialty property, and casualty insurance companies located, primarily in the United States and Europe. AmTrust is a multinational specialty property and casualty insurance holding company with operations in the United States, Europe and Bermuda. The Company provides reinsurance through its subsidiaries, Maiden Reinsurance Ltd. and Maiden Reinsurance North America, Inc. Internationally, the Company provides insurance sales and distribution services through Maiden Global Holdings, Ltd. and its subsidiaries.

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