Analyzing Montpelier Re Holdings (MRH) and Erie Indemnity (NASDAQ:ERIE)
Montpelier Re Holdings (NYSE: MRH) and Erie Indemnity (NASDAQ:ERIE) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.
Valuation and Earnings
This table compares Montpelier Re Holdings and Erie Indemnity’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Montpelier Re Holdings||N/A||N/A||N/A||N/A||N/A|
|Erie Indemnity||$1.65 billion||3.92||$303.02 million||$3.99||31.00|
Erie Indemnity has higher revenue and earnings than Montpelier Re Holdings.
Erie Indemnity pays an annual dividend of $3.13 per share and has a dividend yield of 2.5%. Montpelier Re Holdings does not pay a dividend. Erie Indemnity pays out 78.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Montpelier Re Holdings has increased its dividend for 21 consecutive years and Erie Indemnity has increased its dividend for 7 consecutive years.
This table compares Montpelier Re Holdings and Erie Indemnity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Montpelier Re Holdings||35.71%||13.24%||6.70%|
Institutional & Insider Ownership
30.9% of Erie Indemnity shares are owned by institutional investors. 46.8% of Erie Indemnity shares are owned 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.
This is a summary of current ratings and recommmendations for Montpelier Re Holdings and Erie Indemnity, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Montpelier Re Holdings||0||0||0||0||N/A|
Erie Indemnity beats Montpelier Re Holdings on 6 of the 9 factors compared between the two stocks.
Montpelier Re Holdings Company Profile
Montpelier RE Holdings Ltd. is a holding company. The Company provides customized insurance and reinsurance solutions to the global market. Through its affiliates in Bermuda, it provides institutional and retail investors with direct access to the global property reinsurance market. It operates in three segments: Montpelier Bermuda, which consists of the assets and operations of Montpelier Reinsurance Ltd., which is its wholly owned operating subsidiary based in Pembroke, Bermuda and is registered as a Bermuda Class four insurer; Montpelier at Lloyd’s, which consists of the assets and operations of Montpelier Syndicate 5151, Montpelier Capital Limited, Montpelier at Lloyd’s Limited, Montpelier Underwriting Services Limited and Montpelier Underwriting Inc., and Collateralized Reinsurance, which is marketed under the name Blue Capital. Blue Capital is an asset management platform offering property catastrophe reinsurance-linked investment products to institutional and retail investors.
Erie Indemnity Company Profile
Erie Indemnity Company is a management company. The Company serves as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange (Exchange). The Exchange is a reciprocal insurer that writes property and casualty insurance. The Company’s function is to perform certain services for the Exchange relating to the sales, underwriting and issuance of policies on behalf of the Exchange. The sales related services the Company provides include agent compensation, and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written, as well as additional commissions and bonuses to agents. The underwriting services the Company provides include underwriting and policy processing expenses. It provides information technology services that supports various functions. The remaining services the Company provides include customer service and administrative costs.
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