ProAssurance (NYSE: PRA) and OneBeacon Insurance Group (NYSE:OB) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares ProAssurance and OneBeacon Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OneBeacon Insurance Group||0.10%||-0.12%||0.03%|
Valuation and Earnings
This table compares ProAssurance and OneBeacon Insurance Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ProAssurance||$870.21 million||3.74||$151.08 million||$2.69||22.62|
|OneBeacon Insurance Group||N/A||N/A||N/A||$0.72||25.13|
ProAssurance has higher revenue and earnings than OneBeacon Insurance Group. ProAssurance is trading at a lower price-to-earnings ratio than OneBeacon Insurance Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ProAssurance has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, OneBeacon Insurance Group has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for ProAssurance and OneBeacon Insurance Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OneBeacon Insurance Group||0||0||0||0||N/A|
ProAssurance presently has a consensus price target of $58.33, suggesting a potential downside of 4.14%. Given ProAssurance’s higher possible upside, analysts plainly believe ProAssurance is more favorable than OneBeacon Insurance Group.
ProAssurance pays an annual dividend of $1.24 per share and has a dividend yield of 2.0%. OneBeacon Insurance Group pays an annual dividend of $0.84 per share and has a dividend yield of 4.6%. ProAssurance pays out 46.1% of its earnings in the form of a dividend. OneBeacon Insurance Group pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
80.2% of ProAssurance shares are owned by institutional investors. Comparatively, 17.3% of OneBeacon Insurance Group shares are owned by institutional investors. 1.8% of ProAssurance shares are owned by company insiders. Comparatively, 76.6% of OneBeacon Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
ProAssurance beats OneBeacon Insurance Group on 9 of the 11 factors compared between the two stocks.
ProAssurance Corporation (ProAssurance) is a holding company for property and casualty insurance companies. The Company provides professional liability insurance for healthcare professionals and facilities, professional liability insurance for attorneys, liability insurance for medical technology and life sciences risks, and workers’ compensation insurance. The Company operates through four segments. The Specialty property and casualty segment includes the Company’s professional liability business, and medical technology and life sciences business. The Workers’ compensation segment includes its workers’ compensation business. Lloyd’s Syndicate 1729 (Syndicate 1729) segment includes business of Syndicate 1729, which underwrites risks over a range of property and casualty insurance and reinsurance lines. The Corporate segment includes the Company’s investment operations managed at the corporate level and non-premium revenues generated outside of its insurance entities.
About OneBeacon Insurance Group
OneBeacon Insurance Group, Ltd. (OneBeacon) is a specialty property and casualty insurance writer that offers a range of insurance products in the United States. The Company’s segments include Specialty Products, Specialty Industries, and Investing, Financing and Corporate. As of December 31, 2016, the Specialty Products segment consisted of 10 underwriting operating segments representing an aggregation based on those that offer products, coverages and services to customers across the United States. As of December 31, 2016, the Specialty Industries segment consisted of six underwriting operating segments representing an aggregation based on those that focus on solving the needs of a particular customer or industry group. The Investing, Financing and Corporate segment includes the investing and financing activities for OneBeacon on a consolidated basis, and certain other activities conducted through the Company and its intermediate subsidiaries.
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