Analyzing Enstar Group (ESGR) and The Competition

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

Institutional & Insider 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, 15.5% of shares of all “Multiline Insurance & Brokers” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Enstar Group and its peers’ 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 6.15% 12.90% 2.98%

Risk & Volatility

Enstar Group has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Enstar Group’s peers have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Enstar Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Enstar Group Competitors 137 720 808 23 2.42

As a group, “Multiline Insurance & Brokers” companies have a potential downside of 7.14%. Given Enstar Group’s peers higher possible upside, analysts plainly believe Enstar Group has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Enstar Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Enstar Group $1.13 billion $264.80 million 18.59
Enstar Group Competitors $11.06 billion -$139.96 million 114.58

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

Summary

Enstar Group peers beat Enstar Group on 7 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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