Head to Head Contrast: Employers Holdings (EIG) & Montpelier Re Holdings (MRH)

Employers Holdings (NYSE: EIG) and Montpelier Re Holdings (NYSE:MRH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Institutional & Insider Ownership

77.3% of Employers Holdings shares are owned by institutional investors. 4.0% of Employers Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Employers Holdings and Montpelier Re Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Employers Holdings $773.40 million 1.94 $148.80 million $3.22 14.41
Montpelier Re Holdings N/A N/A N/A N/A N/A

Employers Holdings has higher revenue and earnings than Montpelier Re Holdings.

Profitability

This table compares Employers Holdings and Montpelier Re Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Employers Holdings 13.72% 10.25% 2.32%
Montpelier Re Holdings 35.71% 13.24% 6.70%

Analyst Recommendations

This is a summary of recent ratings for Employers Holdings and Montpelier Re Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Employers Holdings 1 1 0 0 1.50
Montpelier Re Holdings 0 0 0 0 N/A

Employers Holdings presently has a consensus target price of $36.00, suggesting a potential downside of 22.41%. Given Employers Holdings’ higher probable upside, research analysts plainly believe Employers Holdings is more favorable than Montpelier Re Holdings.

Dividends

Employers Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Montpelier Re Holdings does not pay a dividend. Employers Holdings pays out 18.6% of its earnings in the form of a dividend. Employers Holdings has increased its dividend for 7 consecutive years.

Summary

Employers Holdings beats Montpelier Re Holdings on 6 of the 10 factors compared between the two stocks.

About Employers Holdings

Employers Holdings, Inc. is a holding company. Through its insurance subsidiaries, the Company provides workers’ compensation insurance coverage to select, small businesses in low to medium hazard industries. It provides workers’ compensation insurance under a statutory system wherein employers are required to provide coverage for their employees’ medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses. As of December 31, 2016 the Company provided workers’ compensation insurance in 36 states and the District of Columbia, with a concentration in California. Its insurance subsidiaries include Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC) and Employers Assurance Company (EAC). The Company’s insurance products are jointly offered and marketed with and through its partners and alliances.

About Montpelier Re Holdings

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.

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