Allstate (NYSE: ALL) and Everest Re Group (NYSE:RE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.
Insider and Institutional Ownership
77.0% of Allstate shares are held by institutional investors. Comparatively, 91.3% of Everest Re Group shares are held by institutional investors. 1.4% of Allstate shares are held by company insiders. Comparatively, 1.3% of Everest Re Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Allstate and Everest Re Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allstate||$38.52 billion||0.84||$3.19 billion||$6.71||13.70|
|Everest Re Group||$6.61 billion||1.43||$468.96 million||$9.10||25.35|
Allstate has higher revenue and earnings than Everest Re Group. Allstate is trading at a lower price-to-earnings ratio than Everest Re Group, indicating that it is currently the more affordable of the two stocks.
Allstate pays an annual dividend of $1.84 per share and has a dividend yield of 2.0%. Everest Re Group pays an annual dividend of $5.20 per share and has a dividend yield of 2.3%. Allstate pays out 27.4% of its earnings in the form of a dividend. Everest Re Group pays out 57.1% 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. Allstate has raised its dividend for 7 consecutive years and Everest Re Group has raised its dividend for 5 consecutive years.
This is a breakdown of recent ratings and target prices for Allstate and Everest Re Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Everest Re Group||0||5||2||0||2.29|
Allstate presently has a consensus price target of $101.17, indicating a potential upside of 10.04%. Everest Re Group has a consensus price target of $257.43, indicating a potential upside of 11.61%. Given Everest Re Group’s stronger consensus rating and higher probable upside, analysts plainly believe Everest Re Group is more favorable than Allstate.
This table compares Allstate and Everest Re Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Everest Re Group||5.64%||4.04%||1.43%|
Volatility and Risk
Allstate has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Everest Re Group has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Allstate beats Everest Re Group on 10 of the 17 factors compared between the two stocks.
Allstate Company Profile
The Allstate Corporation, together with its subsidiaries, engages in property and casualty insurance, and life insurance businesses in the United States and Canada. The company's Allstate Protection segment sells private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance policies; other personal lines products, including renter, condominium, landlord, boat, umbrella, and manufactured home insurance policies; and commercial lines products under the Allstate, Esurance, and Encompass brand names. Its Service Businesses segment provides consumer electronics and appliance protection plans covering products, including TVs, smartphones, and computers; device and mobile data collection services, analytics and customer risk assessment solutions, and telematics services; roadside assistance services, such as towing, jump-start, lockout, fuel delivery, and tire change services; and vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel protection, and paintless dent repair protection services under the SquareTrade, Arity, Allstate Roadside Services, and Allstate Dealer Services brands. The company's Allstate Life Segment offers term, whole, interest-sensitive, and variable life insurance products, as well as non-proprietary retirement product solutions offered by third-party providers. Its Allstate Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products. The Allstate Corporation sells its products through agencies, as well as directly through contact centers and Internet; and financial specialists, brokers, relationships with wholesale partners, and affinity groups. The company was founded in 1931 and is based in Northbrook, Illinois.
Everest Re Group Company Profile
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products. The company operates through the U.S. Reinsurance, International, Bermuda, and Insurance segments. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the Unites States. The International segment writes foreign property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States and Canada. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker's compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.
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