Critical Contrast: Fidelis Insurance (FIHL) versus Its Peers

Fidelis Insurance (NYSE:FIHL) is one of 311 public companies in the “Insurance” industry, but how does it compare to its peers? We will compare Fidelis Insurance to similar businesses based on the strength of its profitability, risk, valuation, earnings, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Fidelis Insurance and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	9.02%	8.62%	1.62%
Fidelis Insurance Competitors	8.74%	-9.81%	4.11%

Insider & Institutional Ownership

82.0% of Fidelis Insurance shares are held by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are held by institutional investors. 13.4% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Fidelis Insurance and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	2	2	3	0	2.14
Fidelis Insurance Competitors	3336	15675	16524	742	2.40

Fidelis Insurance presently has a consensus target price of $21.92, suggesting a potential downside of 20.96%. As a group, “Insurance” companies have a potential upside of 5.79%. Given Fidelis Insurance’s peers stronger consensus rating and higher probable upside, analysts clearly believe Fidelis Insurance has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Fidelis Insurance and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fidelis Insurance	$2.17 billion	$225.50 million	12.55
Fidelis Insurance Competitors	$15.37 billion	$1.70 billion	34.41

Fidelis Insurance’s peers have higher revenue and earnings than Fidelis Insurance. Fidelis Insurance 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.

Volatility and Risk

Fidelis Insurance has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Fidelis Insurance’s peers have a beta of -1.62, meaning that their average stock price is 262% less volatile than the S&P 500.

Dividends

Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Fidelis Insurance pays out 27.1% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 31.1% of their earnings in the form of a dividend.

Summary

Fidelis Insurance peers beat Fidelis Insurance on 10 of the 15 factors compared.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.