Comparing Assurant (AIZ) and The Competition

Assurant (NYSE: AIZ) is one of 22 public companies in the “Multiline Insurance & Brokers” industry, but how does it compare to its competitors? We will compare Assurant to similar companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, dividends, profitability and risk.

Risk & Volatility

Assurant has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Assurant’s competitors have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Assurant 3.67% 3.55% 0.48%
Assurant Competitors 6.14% 11.23% 2.56%

Dividends

Assurant pays an annual dividend of $2.24 per share and has a dividend yield of 2.2%. Assurant pays out 53.6% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 50.5% of their earnings in the form of a dividend. Assurant has increased its dividend for 13 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Assurant and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assurant 1 0 1 0 2.00
Assurant Competitors 112 803 849 21 2.44

Assurant presently has a consensus target price of $115.00, suggesting a potential upside of 15.27%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 4.27%. Given Assurant’s higher possible upside, research analysts plainly believe Assurant is more favorable than its competitors.

Institutional and Insider Ownership

90.5% of Assurant shares are held by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 0.8% of Assurant shares are held by insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Assurant and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Assurant $7.53 billion $565.35 million 23.87
Assurant Competitors $11.13 billion $534.17 million 163.18

Assurant’s competitors have higher revenue, but lower earnings than Assurant. Assurant 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.

Summary

Assurant competitors beat Assurant on 10 of the 15 factors compared.

About Assurant

Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.

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