Contrasting Kinsale Capital Group (KNSL) & Montpelier Re (MRH)

Montpelier Re (NYSE: MRH) and Kinsale Capital Group (NASDAQ:KNSL) are both small-cap financials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Montpelier Re and Kinsale Capital Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Montpelier Re 0 0 0 0 N/A
Kinsale Capital Group 0 1 2 0 2.67

Kinsale Capital Group has a consensus price target of $45.50, indicating a potential upside of 3.53%. Given Kinsale Capital Group’s higher possible upside, analysts clearly believe Kinsale Capital Group is more favorable than Montpelier Re.

Valuation and Earnings

This table compares Montpelier Re and Kinsale Capital Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Montpelier Re N/A N/A N/A $3.84 11.09
Kinsale Capital Group $141.62 million 6.53 $26.16 million $1.21 36.32

Kinsale Capital Group has higher revenue and earnings than Montpelier Re. Montpelier Re is trading at a lower price-to-earnings ratio than Kinsale Capital Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Kinsale Capital Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Montpelier Re does not pay a dividend. Kinsale Capital Group pays out 19.8% of its earnings in the form of a dividend.

Profitability

This table compares Montpelier Re and Kinsale Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Montpelier Re 35.71% 13.24% 6.70%
Kinsale Capital Group 14.65% 11.69% 4.14%

Insider and Institutional Ownership

82.2% of Kinsale Capital Group shares are held by institutional investors. 11.2% of Kinsale Capital Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Kinsale Capital Group beats Montpelier Re on 7 of the 12 factors compared between the two stocks.

Montpelier Re Company Profile

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.

Kinsale Capital Group Company Profile

Kinsale Capital Group, Inc. is a specialty insurance company. The Company focuses on the excess and surplus lines (E&S) market in the United States. The Company operates through the Excess and Surplus Lines Insurance segment. The Company markets and sells these insurance products in approximately 50 states and the District of Columbia through a network of independent insurance brokers. The Company’s commercial lines offerings include construction, small business, excess casualty, general casualty, energy, professional liability, life sciences, product liability, allied health, healthcare, commercial property, management liability, environmental, inland marine, commercial insurance and public entity. The Company writes an array of coverages with a focus on smaller commercial buyers. The Company also writes a small amount of homeowners insurance in the personal lines market. The Company’s subsidiaries include Kinsale Management, Inc. and Kinsale Insurance Company.

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