Financial Analysis: Enstar Group (ESGR) vs. Its Rivals

Enstar Group (NASDAQ: ESGR) is one of 20 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it compare to its rivals? We will compare Enstar Group to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

Enstar Group has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Enstar Group’s rivals have a beta of 1.48, suggesting that their average stock price is 48% more volatile than the S&P 500.

Insider and Institutional Ownership

87.6% of Enstar Group shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 9.9% of Enstar Group shares are owned by insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Enstar Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Enstar Group Competitors 111 667 733 23 2.44

As a group, “Multiline Insurance & Brokers” companies have a potential upside of 5.59%. Given Enstar Group’s rivals higher probable upside, analysts plainly believe Enstar Group has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Enstar Group and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Enstar Group $1.13 billion $264.80 million 18.44
Enstar Group Competitors $11.04 billion -$139.96 million -236.49

Enstar Group’s rivals have higher revenue, but lower earnings than Enstar Group. Enstar Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Enstar Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enstar Group 20.31% 6.91% 1.41%
Enstar Group Competitors 4.91% 11.16% 2.54%

Summary

Enstar Group rivals beat Enstar Group on 6 of the 10 factors compared.

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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