Everest Re Group (NYSE:RE) and Watford (NASDAQ:WTRE) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
This table compares Everest Re Group and Watford’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Everest Re Group||5.30%||5.90%||1.94%|
This is a breakdown of current ratings and recommmendations for Everest Re Group and Watford, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Everest Re Group||0||5||1||0||2.17|
Everest Re Group presently has a consensus price target of $264.50, indicating a potential downside of 1.34%. Watford has a consensus price target of $29.00, indicating a potential upside of 9.39%. Given Watford’s stronger consensus rating and higher probable upside, analysts plainly believe Watford is more favorable than Everest Re Group.
Everest Re Group pays an annual dividend of $5.60 per share and has a dividend yield of 2.1%. Watford does not pay a dividend. Everest Re Group pays out 120.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
92.0% of Everest Re Group shares are held by institutional investors. Comparatively, 12.5% of Watford shares are held by institutional investors. 1.4% of Everest Re Group shares are held by insiders. Comparatively, 16.6% of Watford shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Everest Re Group and Watford’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Everest Re Group||$7.38 billion||1.48||$103.55 million||$4.65||57.61|
|Watford||$575.23 million||1.05||-$34.88 million||N/A||N/A|
Everest Re Group has higher revenue and earnings than Watford.
Everest Re Group beats Watford on 8 of the 12 factors compared between the two stocks.
Everest Re Group Company Profile
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the United States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States, Canada, and Europe. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker's compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.
Watford Company Profile
Watford Holdings Ltd., together with its subsidiaries, operates as a property, casualty, and mortgage insurance and reinsurance company worldwide. The company was founded in 2013 and is headquartered in Pembroke, Bermuda.
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