Financial Contrast: Montpelier Re Holdings (MRH) & EMC Insurance Group (EMCI)
Montpelier Re Holdings (NYSE: MRH) and EMC Insurance Group (NASDAQ:EMCI) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
EMC Insurance Group pays an annual dividend of $0.84 per share and has a dividend yield of 3.0%. Montpelier Re Holdings does not pay a dividend. EMC Insurance Group pays out 46.9% of its earnings in the form of a dividend. Montpelier Re Holdings has raised its dividend for 7 consecutive years.
This table compares Montpelier Re Holdings and EMC Insurance Group’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%|
|EMC Insurance Group||5.87%||5.66%||1.98%|
Earnings and Valuation
This table compares Montpelier Re Holdings and EMC Insurance Group’s top-line revenue, earnings per share 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|
|EMC Insurance Group||$649.90 million||0.91||$38.22 million||$1.79||15.50|
EMC Insurance Group has higher revenue and earnings than Montpelier Re Holdings.
Insider and Institutional Ownership
28.2% of EMC Insurance Group shares are owned by institutional investors. 4.5% of EMC Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings and target prices for Montpelier Re Holdings and EMC Insurance Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Montpelier Re Holdings||0||0||0||0||N/A|
|EMC Insurance Group||0||0||0||0||N/A|
Montpelier Re Holdings beats EMC Insurance Group on 5 of the 9 factors compared between the two stocks.
About Montpelier Re Holdings
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.
About EMC Insurance Group
EMC Insurance Group Inc. is an insurance holding company. The Company operates through two segments: Property and Casualty Insurance and Reinsurance segment. It conducts its property and casualty insurance operations through its subsidiaries, including EMCASCO Insurance Company, Illinois EMCASCO Insurance Company and Dakota Fire Insurance Company, and its reinsurance operations through its subsidiary, EMC Reinsurance Company. The Company focuses on the sale of commercial lines of property and casualty insurance to small and medium-sized businesses. The Company offered its insurance products in 41 states, as of December 31, 2016. The Company is owned by Employers Mutual Casualty Company (Employers Mutual), a multiple-line property and casualty insurance company. The Company’s insurance agency, EMC Underwriters, LLC (EMC Underwriters), specializes in marketing excess and surplus lines of insurance.
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