Financial Analysis: W.R. Berkley Corporation (WRB) vs. Meadowbrook Insurance Group (MIG)

W.R. Berkley Corporation (NYSE: WRB) and Meadowbrook Insurance Group (NYSE:MIG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for W.R. Berkley Corporation and Meadowbrook Insurance Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W.R. Berkley Corporation 0 9 1 0 2.10
Meadowbrook Insurance Group 0 0 0 0 N/A

W.R. Berkley Corporation presently has a consensus target price of $68.00, indicating a potential upside of 0.32%. Given W.R. Berkley Corporation’s higher probable upside, research analysts clearly believe W.R. Berkley Corporation is more favorable than Meadowbrook Insurance Group.

Earnings & Valuation

This table compares W.R. Berkley Corporation and Meadowbrook Insurance Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
W.R. Berkley Corporation $7.65 billion 1.08 $601.91 million $4.27 15.87
Meadowbrook Insurance Group N/A N/A N/A $0.53 0.08

W.R. Berkley Corporation has higher revenue and earnings than Meadowbrook Insurance Group. Meadowbrook Insurance Group is trading at a lower price-to-earnings ratio than W.R. Berkley Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

70.5% of W.R. Berkley Corporation shares are held by institutional investors. 22.1% of W.R. Berkley Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

W.R. Berkley Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Meadowbrook Insurance Group does not pay a dividend. W.R. Berkley Corporation pays out 13.1% of its earnings in the form of a dividend. Meadowbrook Insurance Group has raised its dividend for 7 consecutive years.

Profitability

This table compares W.R. Berkley Corporation and Meadowbrook Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
W.R. Berkley Corporation 7.09% 6.14% 1.36%
Meadowbrook Insurance Group 4.54% 7.19% 1.16%

Summary

W.R. Berkley Corporation beats Meadowbrook Insurance Group on 9 of the 12 factors compared between the two stocks.

About W.R. Berkley Corporation

W. R. Berkley Corporation is an insurance holding company. It operates through two segments: Insurance and Reinsurance-Global. The Insurance segment consists of its commercial insurance business operations, comprising excess and surplus lines, and admitted lines, throughout the United States, as well as its insurance business operations in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia. Its Insurance segment comprises business units, such as Acadia Insurance, American Mining Insurance Group, Berkley Accident and Health, Berkley Agribusiness Risk Specialists, Berkley Aviation and Berkley Canada. Reinsurance consists of its reinsurance business on a facultative and treaty basis, in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa. Its Reinsurance segment comprises business units, such as Berkley Re America, Berkley Re Asia Pacific, Berkley Re Direct and Berkley Re UK.

About Meadowbrook Insurance Group

Meadowbrook Insurance Group, Inc. (Meadowbrook) is a holding company. The Company is a commercial insurance underwriter and insurance administration services company. The Company markets and underwrites specialty property and casualty insurance programs and products through a network of independent retail agents, wholesalers, program administrators and general agents. The Company’s products include Admitted Programs and Standard Market Products, Main Street Excess and Surplus Lines, Non-Admitted Programs, and Specialty Market Products. The Company is also involved in a range of activities, including program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control and reinsurance. The Company also provides the following services to its fee-for-service and agency clients: administration of risk-bearing entities and agency services.

Receive News & Ratings for W.R. Berkley Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for W.R. Berkley Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply