Head to Head Review: American National Insurance (ANAT) and Enstar Group (ESGR)

American National Insurance (NASDAQ: ANAT) and Enstar Group (NASDAQ:ESGR) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Dividends

American National Insurance pays an annual dividend of $3.28 per share and has a dividend yield of 2.7%. Enstar Group does not pay a dividend. American National Insurance pays out 42.3% of its earnings in the form of a dividend.

Risk and Volatility

American National Insurance has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Enstar Group has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares American National Insurance and Enstar Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American National Insurance $3.23 billion 1.00 $181.00 million $7.75 15.48
Enstar Group $1.13 billion 3.39 $264.80 million $10.57 18.68

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

Analyst Ratings

This is a summary of recent ratings for American National Insurance and Enstar Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American National Insurance 0 0 0 0 N/A
Enstar Group 0 0 0 0 N/A

Profitability

This table compares American National Insurance and Enstar Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American National Insurance 6.28% 2.89% 0.55%
Enstar Group 20.31% 6.91% 1.41%

Insider & Institutional Ownership

65.3% of American National Insurance shares are held by institutional investors. Comparatively, 87.7% of Enstar Group shares are held by institutional investors. 23.5% of American National Insurance shares are held by insiders. Comparatively, 9.9% of Enstar Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Enstar Group beats American National Insurance on 8 of the 13 factors compared between the two stocks.

American National Insurance Company Profile

American National Insurance Company is engaged in life insurance, annuities, and property and casualty insurance. The Company also offers limited health insurance. Its family of companies includes six life insurance companies, eight property and casualty insurance companies, and various non-insurance subsidiaries. Its business segments include Life, which offers products, such as Whole Life, Term Life, Universal Life, Variable Universal Life and Credit Life Insurance; Annuity, including products, such as Deferred Annuity, Single Premium Immediate Annuity and Variable Annuity; Health, including, such as Medicare Supplement, Supplemental Insurance, Stop-Loss, Credit Disability and Medical Expense; Property and Casualty, which offers products, such as Personal Lines, Commercial Lines and Credit-Related Property Insurance products, and Corporate and Other, which consists of its invested assets that are not used to support insurance activities, and non-insurance subsidiaries.

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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