Critical Comparison: Ms&Ad Insurance Group (MSADY) and James River Group (JRVR)

Ms&Ad Insurance Group (OTCMKTS:MSADY) and James River Group (NASDAQ:JRVR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ms&Ad Insurance Group and James River Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ms&Ad Insurance Group 0 0 0 0 N/A
James River Group 0 1 2 0 2.67

James River Group has a consensus price target of $42.67, indicating a potential upside of 11.46%. Given James River Group’s higher probable upside, analysts plainly believe James River Group is more favorable than Ms&Ad Insurance Group.

Insider and Institutional Ownership

0.1% of Ms&Ad Insurance Group shares are held by institutional investors. Comparatively, 98.6% of James River Group shares are held by institutional investors. 15.0% of James River Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Ms&Ad Insurance Group pays an annual dividend of $0.22 per share and has a dividend yield of 1.5%. James River Group pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. James River Group pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. James River Group has raised its dividend for 2 consecutive years. James River Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Ms&Ad Insurance Group and James River Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ms&Ad Insurance Group 2.82% 4.06% 0.54%
James River Group 4.88% 7.01% 1.74%

Valuation & Earnings

This table compares Ms&Ad Insurance Group and James River Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ms&Ad Insurance Group $46.96 billion 0.38 $1.39 billion N/A N/A
James River Group $817.63 million 1.40 $43.56 million $1.57 24.38

Ms&Ad Insurance Group has higher revenue and earnings than James River Group.

Risk and Volatility

Ms&Ad Insurance Group has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, James River Group has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Summary

James River Group beats Ms&Ad Insurance Group on 11 of the 15 factors compared between the two stocks.

Ms&Ad Insurance Group Company Profile

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers various life and non-life insurance products, including fire and allied, marine, personal accident, voluntary automobile, compulsory automobile liability, medical and nursing care, and other insurance products; individual annuity insurance and whole life insurance products; and reinsurance services, as well as income guarantee insurance products. It also provides financial services, including asset management, financial guarantees, 401k, alternative risk transfer, personal finance, and venture capital finance; and risk management services. In addition, the company offers administration, credit guarantee, and loan services; and roadside assistance and house support services, as well as operates retirement homes and elderly daycare centers. MS&AD Insurance Group Holdings, Inc. provides its products and services through cross-selling, as well as other sales channels, including financial institution agents, life insurance professionals, and direct marketing. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

James River Group Company Profile

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance and reinsurance services in the United States. Its Excess and Surplus Lines segment underwrites property and liability insurance on an excess and surplus commercial lines basis in all states and the District of Columbia. This segment distributes its insurance policies primarily through wholesale insurance brokers. The company's Specialty Admitted Insurance segment provides workers' compensation coverage for residential contractors, light manufacturing operations, transportation workers, healthcare workers, and fronting and program business in North Carolina, Georgia, New Jersey, South Carolina, Pennsylvania, Massachusetts, Rhode Island, Virginia, South Carolina, and Tennessee. Its Casualty Reinsurance segment offers proportional and working layer casualty reinsurance to third parties and unaffiliated insurance companies. James River Group Holdings, Ltd. was founded in 2002 and is headquartered in Pembroke, Bermuda.

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