Analyzing Greenlight Reinsurance (GLRE) and Axis Capital Holdings Limited (NYSE:AXS)
Greenlight Reinsurance (NASDAQ: GLRE) and Axis Capital Holdings Limited (NYSE:AXS) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitabiliy, analyst recommendations and dividends.
Valuation & Earnings
This table compares Greenlight Reinsurance and Axis Capital Holdings Limited’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Greenlight Reinsurance||$608.66 million||1.29||$49.74 million||$0.64||32.81|
|Axis Capital Holdings Limited||$4.13 billion||1.31||$472.86 million||$4.79||13.31|
Axis Capital Holdings Limited has higher revenue and earnings than Greenlight Reinsurance. Axis Capital Holdings Limited is trading at a lower price-to-earnings ratio than Greenlight Reinsurance, indicating that it is currently the more affordable of the two stocks.
Axis Capital Holdings Limited pays an annual dividend of $1.52 per share and has a dividend yield of 2.4%. Greenlight Reinsurance does not pay a dividend. Axis Capital Holdings Limited pays out 31.7% of its earnings in the form of a dividend. Greenlight Reinsurance has increased its dividend for 10 consecutive years.
This is a summary of recent recommendations and price targets for Greenlight Reinsurance and Axis Capital Holdings Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Axis Capital Holdings Limited||4||4||1||0||1.67|
Axis Capital Holdings Limited has a consensus price target of $65.86, indicating a potential upside of 3.32%. Given Axis Capital Holdings Limited’s higher possible upside, analysts clearly believe Axis Capital Holdings Limited is more favorable than Greenlight Reinsurance.
This table compares Greenlight Reinsurance and Axis Capital Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Axis Capital Holdings Limited||11.74%||7.86%||1.95%|
Institutional and Insider Ownership
47.8% of Greenlight Reinsurance shares are held by institutional investors. Comparatively, 88.3% of Axis Capital Holdings Limited shares are held by institutional investors. 21.8% of Greenlight Reinsurance shares are held by company insiders. Comparatively, 1.9% of Axis Capital Holdings Limited shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Greenlight Reinsurance has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Axis Capital Holdings Limited has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Axis Capital Holdings Limited beats Greenlight Reinsurance on 11 of the 16 factors compared between the two stocks.
Greenlight Reinsurance Company Profile
Greenlight Capital Re, Ltd. is a holding company. The Company analyzes its underwriting operations using two categories: frequency business, which is characterized as contracts containing a number of small losses emanating from multiple events, and severity business, which is characterized as contracts with the potential for significant losses emanating from one event or multiple events. It conducts its reinsurance operations through two licensed and regulated reinsurance entities: Greenlight Reinsurance, Ltd. (Greenlight Re), based in the Cayman Islands, and Greenlight Reinsurance Ireland, Ltd. (GRIL), based in Ireland. Greenlight Re is engaged in writing property and casualty reinsurance business, as well as long term business, such as life insurance, long term disability and long term care, among others. GRIL is a non-life reinsurance undertaking. Verdant Holding Company, Ltd. makes strategic investments in a select group of property and casualty insurers, and general agents.
Axis Capital Holdings Limited Company Profile
AXIS Capital Holdings Limited is a holding company. The Company provides a range of specialty (re)insurance, through subsidiaries and branch networks- based in Bermuda, the United States, Canada, Europe and Singapore. Its business consists of two global underwriting platforms: AXIS Insurance and AXIS Re. Its segments include Insurance and Reinsurance. The insurance segment operates through offices in Bermuda, the United States, Canada, Europe, Singapore and the Middle East. Its reinsurance segment operates through offices in Bermuda, the United States, Switzerland, Singapore, Brazil and Canada. The business lines in its insurance segment include property, marine, terrorism, aviation, credit and political risk, professional lines, liability, and accident and health. The business lines in its Reinsurance segment include catastrophe; property; professional lines; credit and surety; motor; liability; agriculture; engineering, and marine and other.
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