Comparing Legal & General (LGGNY) & Navigators Group (NASDAQ:NAVG)

Navigators Group (NASDAQ: NAVG) and Legal & General (OTCMKTS:LGGNY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Volatility & Risk

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Navigators Group has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Legal & General has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Navigators Group and Legal & General, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navigators Group 1 3 0 0 1.75
Legal & General 1 0 1 0 2.00

Navigators Group presently has a consensus price target of $56.67, indicating a potential downside of 2.05%. Legal & General has a consensus price target of $21.00, indicating a potential upside of 7.42%. Given Legal & General’s stronger consensus rating and higher possible upside, analysts plainly believe Legal & General is more favorable than Navigators Group.

Dividends

Navigators Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.5%. Legal & General pays an annual dividend of $0.90 per share and has a dividend yield of 4.6%. Navigators Group pays out 24.1% of its earnings in the form of a dividend. Legal & General pays out 46.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider and Institutional Ownership

76.0% of Navigators Group shares are held by institutional investors. Comparatively, 0.1% of Legal & General shares are held by institutional investors. 22.0% of Navigators Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Navigators Group and Legal & General’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Navigators Group $1.31 billion 1.31 $40.49 million $1.16 49.87
Legal & General $52.17 billion 0.45 $2.44 billion $1.95 10.03

Legal & General has higher revenue and earnings than Navigators Group. Legal & General is trading at a lower price-to-earnings ratio than Navigators Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Navigators Group and Legal & General’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navigators Group 3.08% 2.85% 0.68%
Legal & General N/A N/A N/A

Summary

Legal & General beats Navigators Group on 8 of the 15 factors compared between the two stocks.

About Navigators Group

The Navigators Group, Inc., together with its subsidiaries, underwrites marine, property and casualty, and professional liability insurance products and services in the United States and internationally. The company operates through the U.S. Insurance, International Insurance, Global Reinsurance, and Corporate segments. It offers marine insurance products comprising cargo, craft, inland marine, and marine liability; fishing vessels, transport, war, hull, and other marine; and protection and indemnity, specie and fine art, craft, and energy liability insurance products. The company also provides commercial retail excess casualty and specialty wholesale excess casualty; general liability; contractors pollution liability, site pollution liability, and integrated casualty; auto, property, life sciences, surety, media, arts and entertainment, and other property and casualty; onshore and offshore energy, and other energy and engineering; and political violence and terrorism insurance products. In addition, it offers directors and officers; architects and engineers, accountants, miscellaneous professional liability, real estate errors and omissions (E&O), and other E&O; and warranties and indemnity insurance products. Further, the company offers accident and health, marine, property and casualty, professional, management liability, auto, general liability, agriculture, surety, and other reinsurance products. The Navigators Group, Inc. distributes its products through international, national, and regional retail and wholesale insurance brokers. The company was founded in 1982 and is headquartered in Stamford, Connecticut.

About Legal & General

Legal & General Group Plc engages in the provision of risk, savings and investment management products and services. It operates through the following segments: Legal & General Retirement (LGR); Legal & General Investment Management (LGIM); Legal & General Capital (LGC); Legal & General Insurance (LGI); and General Insurance (GI). The LGR segment works with companies, pension fund trustees and its advisers to provide risk transfer solutions. The LGIM segment manages investments for defined benefit plans. The LGC segment develops direct investments and increase the risk-adjusted returns on shareholder assets. The LGI represents UK retail protection, group protection and network business. The GI segment is comprised short-term protection. The company was founded on September 19, 1836 and is headquartered in London, the United Kingdom.

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