Head to Head Survey: Assured Guaranty (AGO) vs. Its Competitors

Assured Guaranty (NYSE: AGO) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it compare to its rivals? We will compare Assured Guaranty to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

Profitability

This table compares Assured Guaranty and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Assured Guaranty 61.25% 16.00% 7.30%
Assured Guaranty Competitors 9.76% 4.97% 2.64%

Insider and Institutional Ownership

97.0% of Assured Guaranty shares are held by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 2.6% of Assured Guaranty shares are held by company insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Assured Guaranty has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Assured Guaranty’s rivals have a beta of 0.93, meaning that their average share price is 7% less volatile than the S&P 500.

Dividends

Assured Guaranty pays an annual dividend of $0.57 per share and has a dividend yield of 1.6%. Assured Guaranty pays out 6.5% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 28.3% of their earnings in the form of a dividend. Assured Guaranty has raised its dividend for 5 consecutive years. Assured Guaranty is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Assured Guaranty and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Assured Guaranty $1.54 billion N/A 4.17
Assured Guaranty Competitors $11.75 billion $2.00 billion 39.38

Assured Guaranty’s rivals have higher revenue and earnings than Assured Guaranty. Assured Guaranty 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.

Analyst Recommendations

This is a summary of recent ratings for Assured Guaranty and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assured Guaranty 0 1 2 0 2.67
Assured Guaranty Competitors 622 2274 2165 44 2.32

Assured Guaranty presently has a consensus target price of $47.00, suggesting a potential upside of 27.89%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.80%. Given Assured Guaranty’s stronger consensus rating and higher probable upside, research analysts plainly believe Assured Guaranty is more favorable than its rivals.

Summary

Assured Guaranty beats its rivals on 10 of the 14 factors compared.

About Assured Guaranty

Assured Guaranty Ltd. is a holding company. The Company, through its subsidiaries, provides credit protection products to the United States and international public finance, including infrastructure, and structured finance markets. It applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. It guarantees obligations issued principally in the United States and the United Kingdom and also guarantees obligations issued in other countries and regions, including Australia and Western Europe. It also provides other forms of insurance that are in line with its risk profile and benefit from its underwriting experience.

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