Enstar Group (ESGR) & Its Rivals Critical Review

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

Profitability

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

Net Margins Return on Equity Return on Assets
Enstar Group 20.31% 6.91% 1.41%
Enstar Group Competitors 6.14% 11.23% 2.56%

Risk & Volatility

Enstar Group has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Enstar Group’s competitors have a beta of 1.28, indicating that their average stock price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

87.8% of Enstar Group shares are owned by institutional investors. Comparatively, 62.3% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 9.9% of Enstar Group shares are owned by insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Enstar Group $1.13 billion $264.80 million 19.79
Enstar Group Competitors $11.13 billion $534.17 million 177.22

Enstar Group’s competitors have higher revenue and earnings than Enstar Group. Enstar 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 Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Enstar Group Competitors 135 814 862 23 2.42

As a group, “Multiline Insurance & Brokers” companies have a potential downside of 6.10%. Given Enstar Group’s competitors higher possible upside, analysts plainly believe Enstar Group has less favorable growth aspects than its competitors.

Summary

Enstar Group competitors beat Enstar Group on 8 of the 10 factors compared.

Enstar Group Company Profile

Enstar Group Limited is an insurance group that offers capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations. The Company’s segments include Non-Life Run-Off, Atrium, StarStone, and Life and Annuities. The Non-life Run-off segment comprises the operations of its subsidiaries that are running off their property and casualty and other non-life lines of business. The Atrium segment underwrites specialist marine, energy, aerospace, non-marine and liability classes. The StarStone segment offers a range of property, casualty and specialty insurance products. The Life and Annuities Segment consists of the operations managing the Company’s closed-block of life and annuity business, and its life settlements business.

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