Financial Comparison: The Navigators Group (NAVG) & Essent Group (ESNT)
The Navigators Group (NASDAQ: NAVG) and Essent Group (NYSE:ESNT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.
This table compares The Navigators Group and Essent Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Navigators Group||6.86%||6.53%||1.60%|
Institutional & Insider Ownership
73.9% of The Navigators Group shares are held by institutional investors. Comparatively, 81.4% of Essent Group shares are held by institutional investors. 24.1% of The Navigators Group shares are held by company insiders. Comparatively, 18.1% of Essent Group shares are held by company 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.
The Navigators Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Essent Group does not pay a dividend. The Navigators Group pays out 8.5% of its earnings in the form of a dividend.
Risk and Volatility
The Navigators Group has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Essent Group has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
Earnings & Valuation
This table compares The Navigators Group and Essent Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Navigators Group||$1.24 billion||1.39||$135.66 million||$2.83||20.65|
|Essent Group||$512.83 million||7.74||$362.45 million||$2.82||15.07|
Essent Group has higher revenue, but lower earnings than The Navigators Group. Essent Group is trading at a lower price-to-earnings ratio than The Navigators Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for The Navigators Group and Essent Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Navigators Group||0||5||0||0||2.00|
The Navigators Group presently has a consensus price target of $56.50, indicating a potential downside of 3.34%. Essent Group has a consensus price target of $44.71, indicating a potential upside of 5.19%. Given Essent Group’s stronger consensus rating and higher possible upside, analysts plainly believe Essent Group is more favorable than The Navigators Group.
Essent Group beats The Navigators Group on 11 of the 16 factors compared between the two stocks.
About The Navigators Group
The Navigators Group, Inc. is an insurance holding company. The Company is an international insurance company focused on marine insurance. The Company’s segments include U.S. Insurance, International Insurance (Int’l Insurance), Global Reinsurance (GlobalRe) and Corporate. The Company’s Property and Casualty (P&C) insurance business primarily offers general liability coverage, and umbrella and excess liability coverage to commercial enterprises through its U.S. Insurance and Int’l Insurance segments. It also offers reinsurance products through its GlobalRe segment. It distributes its products through international, national and regional, retail and wholesale insurance brokers. The Company’s U.S. Insurance and Int’l Insurance segments consists of three segments, such as Marine, Property and Casualty (P&C) and Professional Liability. Its GlobalRe products include accident & health (A&H), marine, P&C and professional liability.
About Essent Group
Essent Group Ltd. is a private mortgage insurance company. The Company is engaged in offering private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its products and services include mortgage insurance, contract underwriting, and Bermuda-based insurance and reinsurance. The Company’s primary mortgage insurance is offered to customers on individual loans at the time of origination on a flow basis, but can also be written in bulk transactions. Its pool insurance provides additional credit enhancement for certain secondary market and other mortgage transactions. The primary mortgage insurance operations were conducted through Essent Guaranty, Inc. which is a mortgage insurer licensed to write mortgage insurance in all 50 states and the District of Columbia, as of December 31, 2016. It offers primary mortgage insurance, pool insurance and master policy. It provides contract underwriting services through CUW Solutions, LLC.
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