Validus (NYSE: VR) is one of 73 publicly-traded companies in the “Fire, marine, & casualty insurance” industry, but how does it weigh in compared to its competitors? We will compare Validus to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Validus pays an annual dividend of $1.52 per share and has a dividend yield of 2.3%. Validus pays out -142.1% of its earnings in the form of a dividend. As a group, “Fire, marine, & casualty insurance” companies pay a dividend yield of 1.5% and pay out 81.8% of their earnings in the form of a dividend. Validus has increased its dividend for 3 consecutive years. Validus is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and target prices for Validus and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Validus presently has a consensus price target of $52.80, suggesting a potential downside of 21.78%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 7.09%. Given Validus’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Validus has less favorable growth aspects than its competitors.
Valuation & Earnings
This table compares Validus and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Validus||$2.80 billion||-$47.62 million||-63.08|
|Validus Competitors||$12.77 billion||$1.43 billion||21.04|
Validus’ competitors have higher revenue and earnings than Validus. Validus is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
99.0% of Validus shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 2.3% of Validus shares are owned by insiders. Comparatively, 12.9% of shares of all “Fire, marine, & casualty insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Validus and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Validus has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Validus’ competitors have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.
Validus competitors beat Validus on 11 of the 15 factors compared.
Validus Holdings, Ltd. provides reinsurance coverage, insurance coverage, and insurance linked securities management services worldwide. It operates through three segments: Reinsurance, Insurance, and Asset Management. The Reinsurance segment underwrites property reinsurance products on a catastrophe excess of loss, per risk excess of loss and proportional basis; and aerospace and aviation, agriculture, composite, marine, technical lines, terrorism, trade credit, workers' compensation, and other specialty lines, as well as casualty and financial lines. The Insurance segment underwrites property, accident and health, agriculture, aviation, contingency, marine, and political lines insurance products; bankers blanket bond, commercial crime, computer crime, cyber- crime, professional indemnity, and directors' and officers' insurance products for various financial institutions and other companies; and commercial and institutional risks comprising general, professional, and product liability, as well as miscellaneous malpractice insurance products. This segment also underwrites marine and energy liability, and political risk insurance products, as well as insurance products for repair, maintenance, and upkeep of aircrafts and premises for small companies. The Asset Management segment manages capital for third parties through insurance-linked securities, and other property catastrophe and specialty reinsurance investments. Validus Holdings, Ltd. was founded in 2005 and is based in Pembroke, Bermuda.
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