Brighthouse Financial (BHF) & Enstar Group (ESGR) Critical Analysis

Brighthouse Financial (NASDAQ: BHF) and Enstar Group (NASDAQ:ESGR) are both mid-cap financials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Brighthouse Financial and Enstar Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brighthouse Financial 2 12 2 0 2.00
Enstar Group 0 0 0 0 N/A

Brighthouse Financial presently has a consensus target price of $66.43, suggesting a potential upside of 15.03%. Given Brighthouse Financial’s higher possible upside, equities analysts plainly believe Brighthouse Financial is more favorable than Enstar Group.

Insider & Institutional Ownership

81.3% of Brighthouse Financial shares are owned by institutional investors. Comparatively, 87.7% of Enstar Group shares are owned by institutional investors. 9.9% of Enstar Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Brighthouse Financial and Enstar Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brighthouse Financial N/A N/A N/A
Enstar Group 20.31% 6.91% 1.41%

Valuation and Earnings

This table compares Brighthouse Financial and Enstar Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brighthouse Financial N/A N/A N/A ($23.47) -2.46
Enstar Group $1.13 billion 3.34 $264.80 million $10.57 18.38

Enstar Group has higher revenue and earnings than Brighthouse Financial. Brighthouse Financial is trading at a lower price-to-earnings ratio than Enstar Group, indicating that it is currently the more affordable of the two stocks.

Summary

Enstar Group beats Brighthouse Financial on 8 of the 10 factors compared between the two stocks.

Brighthouse Financial Company Profile

Brighthouse Financial, Inc. is a provider of life insurance and annuity products in the United States. The Company offers a range of products and services, which include variable, fixed, index-linked and income annuities, as well as variable, universal, term and whole life products. These products and services are marketed through various third party retail distribution channels in the United States. Fixed income annuities provide a guaranteed monthly income for a specified period of years and/or for the life of the annuitant. The Company operating segments include Annuities, Life and Run-off.

Enstar Group Company Profile

Enstar Group Limited is an insurance group that offers capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations. The Company’s segments include Non-Life Run-Off, Atrium, StarStone, and Life and Annuities. The Non-life Run-off segment comprises the operations of its subsidiaries that are running off their property and casualty and other non-life lines of business. The Atrium segment underwrites specialist marine, energy, aerospace, non-marine and liability classes. The StarStone segment offers a range of property, casualty and specialty insurance products. The Life and Annuities Segment consists of the operations managing the Company’s closed-block of life and annuity business, and its life settlements business.

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