Montpelier Re Holdings (MRH) vs. Employers Holdings (EIG) Head to Head Survey

Montpelier Re Holdings (NYSE: MRH) and Employers Holdings (NYSE:EIG) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Institutional & Insider Ownership

77.3% of Employers Holdings shares are held by institutional investors. 4.0% of Employers Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Montpelier Re Holdings and Employers Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Montpelier Re Holdings N/A N/A N/A N/A N/A
Employers Holdings $773.40 million 1.94 $148.80 million $3.22 14.41

Employers Holdings has higher revenue and earnings than Montpelier Re Holdings.

Analyst Ratings

This is a summary of current recommendations and price targets for Montpelier Re Holdings and Employers Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Montpelier Re Holdings 0 0 0 0 N/A
Employers Holdings 1 1 0 0 1.50

Employers Holdings has a consensus target price of $36.00, suggesting a potential downside of 22.41%. Given Employers Holdings’ higher possible upside, analysts clearly believe Employers Holdings is more favorable than Montpelier Re Holdings.

Profitability

This table compares Montpelier Re Holdings and Employers Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Montpelier Re Holdings 35.71% 13.24% 6.70%
Employers Holdings 13.72% 10.25% 2.32%

Dividends

Employers Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Montpelier Re Holdings does not pay a dividend. Employers Holdings pays out 18.6% of its earnings in the form of a dividend. Montpelier Re Holdings has raised its dividend for 7 consecutive years.

About Montpelier Re Holdings

Montpelier RE Holdings Ltd. is a holding company. The Company provides customized insurance and reinsurance solutions to the global market. Through its affiliates in Bermuda, it provides institutional and retail investors with direct access to the global property reinsurance market. It operates in three segments: Montpelier Bermuda, which consists of the assets and operations of Montpelier Reinsurance Ltd., which is its wholly owned operating subsidiary based in Pembroke, Bermuda and is registered as a Bermuda Class four insurer; Montpelier at Lloyd’s, which consists of the assets and operations of Montpelier Syndicate 5151, Montpelier Capital Limited, Montpelier at Lloyd’s Limited, Montpelier Underwriting Services Limited and Montpelier Underwriting Inc., and Collateralized Reinsurance, which is marketed under the name Blue Capital. Blue Capital is an asset management platform offering property catastrophe reinsurance-linked investment products to institutional and retail investors.

About Employers Holdings

Employers Holdings, Inc. is a holding company. Through its insurance subsidiaries, the Company provides workers’ compensation insurance coverage to select, small businesses in low to medium hazard industries. It provides workers’ compensation insurance under a statutory system wherein employers are required to provide coverage for their employees’ medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses. As of December 31, 2016 the Company provided workers’ compensation insurance in 36 states and the District of Columbia, with a concentration in California. Its insurance subsidiaries include Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC) and Employers Assurance Company (EAC). The Company’s insurance products are jointly offered and marketed with and through its partners and alliances.

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