NI (NODK) versus RenaissanceRe (RNR) Critical Comparison

NI (NASDAQ:NODK) and RenaissanceRe (NYSE:RNR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Risk & Volatility

NI has a beta of -0.01, suggesting that its share price is 101% less volatile than the S&P 500. Comparatively, RenaissanceRe has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

19.5% of NI shares are owned by institutional investors. Comparatively, 94.8% of RenaissanceRe shares are owned by institutional investors. 0.4% of NI shares are owned by insiders. Comparatively, 1.5% of RenaissanceRe shares are owned 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.

Dividends

RenaissanceRe pays an annual dividend of $1.32 per share and has a dividend yield of 0.9%. NI does not pay a dividend. RenaissanceRe pays out -15.8% of its earnings in the form of a dividend. RenaissanceRe has raised its dividend for 13 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for NI and RenaissanceRe, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NI 0 0 0 0 N/A
RenaissanceRe 0 5 2 0 2.29

RenaissanceRe has a consensus target price of $141.29, indicating a potential upside of 1.24%. Given RenaissanceRe’s higher possible upside, analysts clearly believe RenaissanceRe is more favorable than NI.

Profitability

This table compares NI and RenaissanceRe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NI 8.60% 6.74% 4.23%
RenaissanceRe -11.73% -3.54% -0.91%

Valuation and Earnings

This table compares NI and RenaissanceRe’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NI $189.14 million 2.00 $15.99 million N/A N/A
RenaissanceRe $2.10 billion 2.67 -$222.38 million ($8.35) -16.71

NI has higher earnings, but lower revenue than RenaissanceRe.

Summary

RenaissanceRe beats NI on 10 of the 15 factors compared between the two stocks.

NI Company Profile

NI Holdings, Inc. underwrites property and casualty insurance products in North Dakota, South Dakota, Nebraska, Minnesota, Nevada, and Arizona. Its products include multi-peril crop, crop hail, private passenger automobile, farm owners, homeowners, and commercial property and liability insurance policies. The company distributes its insurance products through independent producers and agents. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. is a subsidiary of Nodak Mutual Group, Inc.

RenaissanceRe Company Profile

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance coverages in the United States and internationally. Its Property segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, such as earthquakes, hurricanes, and tsunamis, as well as claims arising from other natural and man-made catastrophes comprising winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, including proportional reinsurance, property per risk, property reinsurance, and binding facilities and regional U.S. multi-line reinsurance. The company's Casualty and Specialty segment writes various classes of products, such as directors and officers, and medical malpractice; automobile liability, casualty clash, employer's liability, umbrella or excess casualty, and workers' compensation; financial guaranty, mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. This segment also offers a range of casualty insurance products through Syndicate 1458, including general liability, medical malpractice, and professional liability. The company distributes its products and services primarily through intermediaries. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

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