Head to Head Contrast: W.R. Berkley (NYSE:WRB) vs. RenaissanceRe (NYSE:RNR)

W.R. Berkley (NYSE:WRB) and RenaissanceRe (NYSE:RNR) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Volatility and Risk

W.R. Berkley has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, RenaissanceRe has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Valuation and Earnings

This table compares W.R. Berkley and RenaissanceRe”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W.R. Berkley	$14.71 billion	1.96	$1.78 billion	$4.73	16.38
RenaissanceRe	$12.85 billion	1.11	$2.68 billion	$34.78	10.15

RenaissanceRe has lower revenue, but higher earnings than W.R. Berkley. RenaissanceRe is trading at a lower price-to-earnings ratio than W.R. Berkley, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

68.8% of W.R. Berkley shares are owned by institutional investors. Comparatively, 100.0% of RenaissanceRe shares are owned by institutional investors. 25.1% of W.R. Berkley shares are owned by insiders. Comparatively, 2.3% of RenaissanceRe shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares W.R. Berkley and RenaissanceRe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W.R. Berkley	12.53%	19.70%	4.27%
RenaissanceRe	16.25%	21.13%	4.21%

Dividends

W.R. Berkley pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. RenaissanceRe pays an annual dividend of $1.64 per share and has a dividend yield of 0.5%. W.R. Berkley pays out 8.5% of its earnings in the form of a dividend. RenaissanceRe pays out 4.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. W.R. Berkley has raised its dividend for 23 consecutive years and RenaissanceRe has raised its dividend for 30 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for W.R. Berkley and RenaissanceRe, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W.R. Berkley	6	9	3	0	1.83
RenaissanceRe	1	12	5	0	2.22

W.R. Berkley currently has a consensus target price of $70.56, indicating a potential downside of 8.91%. RenaissanceRe has a consensus target price of $343.69, indicating a potential downside of 2.68%. Given RenaissanceRe’s stronger consensus rating and higher possible upside, analysts plainly believe RenaissanceRe is more favorable than W.R. Berkley.

Summary

RenaissanceRe beats W.R. Berkley on 10 of the 17 factors compared between the two stocks.

About W.R. Berkley

W.R. Berkley Corporation is an insurance holding company that provides commercial property and casualty insurance, reinsurance, and related services. Its offerings include coverage for businesses and professionals across areas such as property, casualty, workers’ compensation, transportation, and specialty risks. Founded in 1967 by William R. Berkley, the company operates through a group of insurance businesses with expertise in specific markets and customer needs. Its operations serve customers in the United States and select international markets.

About RenaissanceRe

RenaissanceRe Holdings Ltd. is a Bermuda-based provider of reinsurance and insurance, serving clients around the world. The company focuses on helping insurers and other businesses manage risks that can be difficult to predict or absorb. Its main offerings include property catastrophe reinsurance, which helps protect insurers against losses from events such as hurricanes and earthquakes, as well as casualty and specialty reinsurance and insurance. RenaissanceRe also manages capital on behalf of third-party investors and uses risk modeling to assess and manage its exposure.