National General (NGHC) vs. The Competition Financial Review

National General (NASDAQ: NGHC) is one of 22 public companies in the “Multiline Insurance & Brokers” industry, but how does it contrast to its rivals? We will compare National General to similar companies based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Profitability

This table compares National General and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National General 2.62% 7.30% 1.44%
National General Competitors 6.14% 11.23% 2.56%

Analyst Ratings

This is a breakdown of recent ratings and target prices for National General and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National General 0 1 3 0 2.75
National General Competitors 112 803 849 21 2.44

National General currently has a consensus price target of $27.00, suggesting a potential upside of 27.72%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.54%. Given National General’s stronger consensus rating and higher possible upside, analysts clearly believe National General is more favorable than its rivals.

Dividends

National General pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. National General pays out 16.5% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 50.5% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares National General and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
National General $3.55 billion $172.21 million 21.79
National General Competitors $11.13 billion $534.17 million 161.95

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

Institutional & Insider Ownership

45.6% of National General shares are held by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 3.4% of National General shares are held by company insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are held 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.

Risk and Volatility

National General has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, National General’s rivals have a beta of 1.28, suggesting that their average stock price is 28% more volatile than the S&P 500.

Summary

National General rivals beat National General on 10 of the 15 factors compared.

About National General

National General Holdings Corp. is a specialty personal lines insurance holding company. Through its subsidiaries, the Company provides a range of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche products. It operates through two segments: Property and Casualty (P&C) and Accident and Health (A&H). Its P&C segment offers its P&C insurance products through a network of agents, a number of affinity partners and through direct-response marketing programs. Its A&H segment provides accident and non-major medical health insurance products targeting its existing P&C policyholders and the anticipated market of employed persons who are uninsured or underinsured. The P&C segment operates its business through three distribution channels: agency, affinity and direct. The A&H segment provides supplemental accident and health insurance products.

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