Reviewing Enstar Group (ESGR) and Validus (VR)

Enstar Group (NASDAQ:ESGR) and Validus (NYSE:VR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Enstar Group 8.66% 4.81% 1.07%
Validus N/A N/A N/A

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enstar Group $1.11 billion 3.37 $311.45 million N/A N/A
Validus N/A N/A N/A N/A N/A

Enstar Group has higher revenue and earnings than Validus.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Enstar Group and Validus, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Validus 0 4 0 0 2.00

Validus has a consensus price target of $50.00, suggesting a potential downside of 26.46%. Given Validus’ higher possible upside, analysts plainly believe Validus is more favorable than Enstar Group.

Insider and Institutional Ownership

70.7% of Enstar Group shares are held by institutional investors. Comparatively, 82.0% of Validus shares are held by institutional investors. 10.0% of Enstar Group shares are held by insiders. Comparatively, 2.3% of Validus shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Validus pays an annual dividend of $1.52 per share and has a dividend yield of 2.2%. Enstar Group does not pay a dividend. Validus has increased its dividend for 3 consecutive years.

Summary

Enstar Group beats Validus on 5 of the 9 factors compared between the two stocks.

Enstar Group Company Profile

Enstar Group Limited acquires and manages insurance and reinsurance companies, and portfolios of insurance and reinsurance business in run-off. It operates in three segments: Non-Life Run-Off, Atrium, and StarStone. The Non-Life Run-Off segment engages in the running off property and casualty, and other non-life lines of businesses. It also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, and IT consulting services to the insurance and reinsurance industry. The Atrium segment is involved in underwriting various classes, including marine, aviation, transit, property and casualty binding authorities, reinsurance, accident and health, and non marine direct and facultative. The StarStone segment offers a range of property, casualty, and specialty insurance products to large multi-national, and small and middle-market clients. The company operates in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and internationally. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited as a result of its merger with The Enstar Group, Inc. in January 2007. Enstar Group Limited was founded in 2001 and is headquartered in Hamilton, Bermuda.

Validus Company Profile

Validus Holdings, Ltd. provides reinsurance coverage, insurance coverage, and insurance linked securities management services worldwide. It operates through three segments: Reinsurance, Insurance, and Asset Management. The Reinsurance segment underwrites property reinsurance products on a catastrophe excess of loss, per risk excess of loss and proportional basis; and aerospace and aviation, agriculture, composite, marine, technical lines, terrorism, trade credit, workers' compensation, and other specialty lines, as well as casualty and financial lines. The Insurance segment underwrites property, accident and health, agriculture, aviation, contingency, marine, and political lines insurance products; bankers blanket bond, commercial crime, computer crime, cyber- crime, professional indemnity, and directors' and officers' insurance products for various financial institutions and other companies; and commercial and institutional risks comprising general, professional, and product liability, as well as miscellaneous malpractice insurance products. This segment also underwrites marine and energy liability, and political risk insurance products, as well as insurance products for repair, maintenance, and upkeep of aircrafts and premises for small companies. The Asset Management segment manages capital for third parties through insurance-linked securities, and other property catastrophe and specialty reinsurance investments. Validus Holdings, Ltd. was founded in 2005 and is based in Pembroke, Bermuda.

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