Contrasting Aspen Insurance Holdings Limited (AHL) & Blue Capital Reinsurance Holdings (BCRH)

Aspen Insurance Holdings Limited (NYSE: AHL) and Blue Capital Reinsurance Holdings (NYSE:BCRH) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitabiliy.

Valuation & Earnings

This table compares Aspen Insurance Holdings Limited and Blue Capital Reinsurance Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aspen Insurance Holdings Limited $2.79 billion 1.10 $293.20 million $2.24 22.86
Blue Capital Reinsurance Holdings $42.10 million 4.02 $13.40 million $1.53 12.65

Aspen Insurance Holdings Limited has higher revenue and earnings than Blue Capital Reinsurance Holdings. Blue Capital Reinsurance Holdings is trading at a lower price-to-earnings ratio than Aspen Insurance Holdings Limited, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Aspen Insurance Holdings Limited and Blue Capital Reinsurance Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aspen Insurance Holdings Limited 0 1 0 0 2.00
Blue Capital Reinsurance Holdings 0 2 0 0 2.00

Aspen Insurance Holdings Limited currently has a consensus target price of $55.00, suggesting a potential upside of 7.42%. Blue Capital Reinsurance Holdings has a consensus target price of $20.00, suggesting a potential upside of 3.36%. Given Aspen Insurance Holdings Limited’s higher possible upside, equities research analysts clearly believe Aspen Insurance Holdings Limited is more favorable than Blue Capital Reinsurance Holdings.

Volatility and Risk

Aspen Insurance Holdings Limited has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Blue Capital Reinsurance Holdings has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Institutional and Insider Ownership

91.8% of Aspen Insurance Holdings Limited shares are owned by institutional investors. Comparatively, 40.6% of Blue Capital Reinsurance Holdings shares are owned by institutional investors. 1.3% of Aspen Insurance Holdings Limited shares are owned by company insiders. Comparatively, 0.1% of Blue Capital Reinsurance Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Aspen Insurance Holdings Limited and Blue Capital Reinsurance Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aspen Insurance Holdings Limited 6.91% 3.97% 1.22%
Blue Capital Reinsurance Holdings 31.83% 7.44% 6.54%

Dividends

Aspen Insurance Holdings Limited pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Blue Capital Reinsurance Holdings pays an annual dividend of $1.20 per share and has a dividend yield of 6.2%. Aspen Insurance Holdings Limited pays out 42.9% of its earnings in the form of a dividend. Blue Capital Reinsurance Holdings pays out 78.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Aspen Insurance Holdings Limited has raised its dividend for 5 consecutive years.

Summary

Aspen Insurance Holdings Limited beats Blue Capital Reinsurance Holdings on 10 of the 15 factors compared between the two stocks.

Aspen Insurance Holdings Limited Company Profile

Aspen Insurance Holdings Limited is a holding company. The Company underwrites specialty insurance and reinsurance on a global basis. It manages its business as two business segments: Aspen Insurance and Aspen Reinsurance (Aspen Re). The reinsurance segment consists of property catastrophe reinsurance (including the business written through Aspen Capital Markets), other property reinsurance (risk excess, pro rata and facultative), casualty reinsurance (U.S. treaty, international treaty and global facultative) and specialty reinsurance (credit and surety, agriculture insurance and reinsurance, marine, aviation, terrorism, engineering and other specialty lines). The insurance segment consists of property and casualty insurance; marine, aviation and energy insurance, and financial and professional lines insurance. Aspen Re participates in alternative reinsurance market through Aspen Capital Markets, which is part of property catastrophe reinsurance line of business.

Blue Capital Reinsurance Holdings Company Profile

Blue Capital Reinsurance Holdings Ltd. provides collateralized reinsurance in the property catastrophe market and invests in various insurance-linked securities. The Company conducts its operations through its subsidiaries, including Blue Capital Re Ltd. (Blue Capital Re), which provides collateralized reinsurance, and Blue Capital Re ILS Ltd. (Blue Capital Re ILS), which conducts hedging and other investment activities. Blue Capital Re provides reinsurance to third-party insurance and reinsurance companies through reinsurance contracts, either directly with the cedant or on a fronted basis. Blue Capital Re ILS may purchase catastrophe bonds to access certain risks. Blue Capital Re or Blue Capital Re ILS may buy and sell industry loss warranties as a way to access certain risks. Blue Capital Re ILS’ portfolio may include over-the-counter or exchange-traded futures or options listed on catastrophe indexes, such as catastrophe or weather derivatives.

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