Critical Review: Enstar Group (ESGR) and Its Peers

Enstar Group (NASDAQ: ESGR) is one of 21 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it contrast to its peers? We will compare Enstar Group to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Enstar Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Enstar Group Competitors 112 674 747 23 2.44

As a group, “Multiline Insurance & Brokers” companies have a potential upside of 4.21%. Given Enstar Group’s peers higher probable upside, analysts clearly believe Enstar Group has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Enstar Group 20.31% 6.91% 1.41%
Enstar Group Competitors 4.92% 11.14% 2.54%

Insider and Institutional Ownership

88.8% of Enstar Group shares are owned by institutional investors. Comparatively, 61.8% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 9.9% of Enstar Group shares are owned by company insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” 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.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Enstar Group $1.13 billion $264.80 million 18.72
Enstar Group Competitors $11.06 billion -$131.95 million 85.48

Enstar Group’s peers have higher revenue, but lower earnings than Enstar Group. Enstar Group 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.

Volatility and Risk

Enstar Group has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Enstar Group’s peers have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Summary

Enstar Group peers beat Enstar Group on 7 of the 10 factors compared.

About Enstar Group

Enstar Group Limited is an insurance group that offers capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations. The Company’s segments include Non-Life Run-Off, Atrium, StarStone, and Life and Annuities. The Non-life Run-off segment comprises the operations of its subsidiaries that are running off their property and casualty and other non-life lines of business. The Atrium segment underwrites specialist marine, energy, aerospace, non-marine and liability classes. The StarStone segment offers a range of property, casualty and specialty insurance products. The Life and Annuities Segment consists of the operations managing the Company’s closed-block of life and annuity business, and its life settlements business.

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