Erie Indemnity (NASDAQ: ERIE) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its competitors? We will compare Erie Indemnity to related companies based on the strength of its dividends, risk, valuation, institutional ownership, analyst recommendations, earnings and profitability.

Volatility and Risk

Erie Indemnity has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Erie Indemnity’s competitors have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Dividends

Erie Indemnity pays an annual dividend of $3.13 per share and has a dividend yield of 2.6%. Erie Indemnity pays out 78.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 26.8% of their earnings in the form of a dividend. Erie Indemnity has raised its dividend for 21 consecutive years.

Profitability

This table compares Erie Indemnity and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Erie Indemnity 12.73% 25.11% 13.76%
Erie Indemnity Competitors 10.09% 5.29% 2.71%

Earnings & Valuation

This table compares Erie Indemnity and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Erie Indemnity $1.65 billion $303.02 million 29.86
Erie Indemnity Competitors $11.75 billion $2.00 billion 36.13

Erie Indemnity’s competitors have higher revenue and earnings than Erie Indemnity. Erie Indemnity is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Erie Indemnity and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Erie Indemnity 0 0 0 0 N/A
Erie Indemnity Competitors 598 2232 2117 41 2.32

As a group, “Property & Casualty Insurance” companies have a potential downside of 0.21%. Given Erie Indemnity’s competitors higher possible upside, analysts clearly believe Erie Indemnity has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

31.0% of Erie Indemnity shares are held by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 46.8% of Erie Indemnity shares are held by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Erie Indemnity competitors beat Erie Indemnity on 7 of the 12 factors compared.

About Erie Indemnity

Erie Indemnity Company is a management company. The Company serves as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange (Exchange). The Exchange is a reciprocal insurer that writes property and casualty insurance. The Company’s function is to perform certain services for the Exchange relating to the sales, underwriting and issuance of policies on behalf of the Exchange. The sales related services the Company provides include agent compensation, and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written, as well as additional commissions and bonuses to agents. The underwriting services the Company provides include underwriting and policy processing expenses. It provides information technology services that supports various functions. The remaining services the Company provides include customer service and administrative costs.

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