Comparing Erie Indemnity (ERIE) & The Competition
Erie Indemnity (NASDAQ: ERIE) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it compare to its rivals? We will compare Erie Indemnity to similar businesses based on the strength of its risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
31.0% of Erie Indemnity shares are held by institutional investors. Comparatively, 61.2% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 46.8% of Erie Indemnity shares are held by company insiders. Comparatively, 15.4% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Erie Indemnity pays an annual dividend of $3.13 per share and has a dividend yield of 2.6%. 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. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 26.6% of their earnings in the form of a dividend. Erie Indemnity has raised its dividend for 21 consecutive years.
This is a breakdown of recent recommendations for Erie Indemnity and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Erie Indemnity Competitors||725||2555||2265||72||2.30|
As a group, “Property & Casualty Insurance” companies have a potential upside of 2.53%. Given Erie Indemnity’s rivals higher probable upside, analysts clearly believe Erie Indemnity has less favorable growth aspects than its rivals.
Volatility and Risk
Erie Indemnity has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Erie Indemnity’s rivals have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.
This table compares Erie Indemnity and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Erie Indemnity Competitors||10.22%||5.47%||2.76%|
Earnings & Valuation
This table compares Erie Indemnity and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Erie Indemnity||$1.65 billion||$303.02 million||29.75|
|Erie Indemnity Competitors||$11.75 billion||$2.00 billion||35.65|
Erie Indemnity’s rivals have higher revenue and earnings than Erie Indemnity. Erie Indemnity is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Erie Indemnity rivals beat Erie Indemnity on 7 of the 12 factors compared.
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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