Essent Group (ESNT) and Its Peers Head to Head Comparison

Essent Group (NYSE: ESNT) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its competitors? We will compare Essent Group to similar companies based on the strength of its valuation, earnings, analyst recommendations, profitability, risk, institutional ownership and dividends.

Volatility and Risk

Essent Group has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Essent Group’s competitors have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

82.4% of Essent Group shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 18.1% of Essent Group shares are owned by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Essent Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Essent Group 50.92% 18.77% 13.32%
Essent Group Competitors 8.96% 4.45% 2.48%

Valuation and Earnings

This table compares Essent Group and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Essent Group $458.26 million $222.60 million 14.54
Essent Group Competitors $11.51 billion $1.16 billion 150.67

Essent Group’s competitors have higher revenue and earnings than Essent Group. Essent Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for Essent Group and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essent Group 0 2 5 0 2.71
Essent Group Competitors 621 2289 2174 44 2.32

Essent Group currently has a consensus target price of $44.86, suggesting a potential upside of 9.41%. As a group, “Property & Casualty Insurance” companies have a potential upside of 2.41%. Given Essent Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Essent Group is more favorable than its competitors.

Summary

Essent Group beats its competitors on 9 of the 13 factors compared.

About Essent Group

Essent Group Ltd. is a private mortgage insurance company. The Company is engaged in offering private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its products and services include mortgage insurance, contract underwriting, and Bermuda-based insurance and reinsurance. The Company’s primary mortgage insurance is offered to customers on individual loans at the time of origination on a flow basis, but can also be written in bulk transactions. Its pool insurance provides additional credit enhancement for certain secondary market and other mortgage transactions. The primary mortgage insurance operations were conducted through Essent Guaranty, Inc. which is a mortgage insurer licensed to write mortgage insurance in all 50 states and the District of Columbia, as of December 31, 2016. It offers primary mortgage insurance, pool insurance and master policy. It provides contract underwriting services through CUW Solutions, LLC.

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