Financial Review: Tiptree (TIPT) versus Its Competitors

Tiptree (NASDAQ: TIPT) is one of 94 publicly-traded companies in the “Fire, marine, & casualty insurance” industry, but how does it contrast to its peers? We will compare Tiptree to similar businesses based on the strength of its dividends, earnings, valuation, profitability, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Tiptree and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tiptree 4.64% 14.72% 1.84%
Tiptree Competitors 6.35% 3.26% 0.93%

Dividends

Tiptree pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. Tiptree pays out 10.7% of its earnings in the form of a dividend. As a group, “Fire, marine, & casualty insurance” companies pay a dividend yield of 1.5% and pay out 17.1% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Tiptree and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tiptree $810.30 million -$29.16 million 9.61
Tiptree Competitors $11.86 billion $1.35 billion 79.03

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Tiptree and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tiptree 0 0 0 0 N/A
Tiptree Competitors 672 2980 2658 144 2.35

As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 12.95%. Given Tiptree’s peers higher probable upside, analysts plainly believe Tiptree has less favorable growth aspects than its peers.

Volatility and Risk

Tiptree has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Tiptree’s peers have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Institutional & Insider Ownership

34.8% of Tiptree shares are owned by institutional investors. Comparatively, 57.7% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 30.1% of Tiptree shares are owned by company insiders. Comparatively, 13.0% of shares of all “Fire, marine, & casualty insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Tiptree peers beat Tiptree on 7 of the 12 factors compared.

About Tiptree

Tiptree, Inc. is a holding company, which engages in the provision of specialty insurance and investment management services. It operates through the following segments: Insurance, Mortgage, and Other. The Insurance segment offers specialty insurance, warranty products, and related administration services. The Mortgage segment includes residential mortgage loans which are typically sold to secondary market investors, either servicing released or servicing retained. The Other segment refers to the asset management, mortgage operations of luxury, shipping operations, and other investments. The company was founded on March 19, 2007 is headquartered in New York, NY.

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