Reviewing MBIA (MBI) and The Competition

MBIA (NYSE: MBI) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its competitors? We will compare MBIA to related companies based off the strength of its analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Earnings & Valuation

This table compares MBIA and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MBIA $237.00 million N/A -0.86
MBIA Competitors $11.75 billion $2.00 billion 34.84

MBIA’s competitors have higher revenue and earnings than MBIA. MBIA is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently the more affordable than other companies in its industry.

Volatility & Risk

MBIA has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500. Comparatively, MBIA’s competitors have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for MBIA and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MBIA 0 0 2 0 3.00
MBIA Competitors 715 2517 2228 69 2.30

MBIA presently has a consensus target price of $14.50, suggesting a potential upside of 39.56%. All “Property & Casualty Insurance” companies have a potential downside of 1.72%. Given MBIA’s stronger consensus rating and higher possible upside, equities research analysts clearly believe MBIA is more favorable than its competitors.

Institutional & Insider Ownership

92.0% of MBIA shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 4.1% of MBIA shares are owned by company insiders. Comparatively, 14.8% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares MBIA and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MBIA N/A -4.33% -1.20%
MBIA Competitors 10.15% 5.36% 2.73%

Summary

MBIA competitors beat MBIA on 6 of the 11 factors compared.

MBIA Company Profile

MBIA Inc. is a holding company. The Company, through its subsidiaries, is engaged in the financial guarantee insurance businesses in the industry. The Company manages its business within three segments: United States (U.S.) public finance insurance; corporate, and international and structured finance insurance. The U.S. public finance insurance business is primarily operated through National Public Finance Guarantee Corporation. The corporate segment consists of general corporate activities, including providing general support services, including management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, to other operating businesses, and asset and capital management. The international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries.

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