Reviewing MBIA (NYSE:MBI) and Everest Group (NYSE:EG)

MBIA (NYSE:MBI) and Everest Group (NYSE:EG) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Risk and Volatility

MBIA has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Everest Group has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Institutional and Insider Ownership

61.0% of MBIA shares are held by institutional investors. Comparatively, 92.6% of Everest Group shares are held by institutional investors. 11.3% of MBIA shares are held by company insiders. Comparatively, 0.7% of Everest Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares MBIA and Everest Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MBIA	$80.00 million	3.78	-$177.00 million	($3.58)	-1.66
Everest Group	$17.50 billion	1.00	$1.59 billion	$37.86	9.25

Everest Group has higher revenue and earnings than MBIA. MBIA is trading at a lower price-to-earnings ratio than Everest Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for MBIA and Everest Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MBIA	1	0	1	0	2.00
Everest Group	0	10	6	0	2.38

MBIA currently has a consensus target price of $7.50, indicating a potential upside of 26.45%. Everest Group has a consensus target price of $366.14, indicating a potential upside of 4.53%. Given MBIA’s higher possible upside, equities research analysts clearly believe MBIA is more favorable than Everest Group.

Profitability

This table compares MBIA and Everest Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MBIA	-221.25%	N/A	-1.68%
Everest Group	9.09%	12.50%	3.08%

Summary

Everest Group beats MBIA on 10 of the 14 factors compared between the two stocks.

About MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.