Critical Contrast: OneBeacon Insurance Group (OB) and The Competition

OneBeacon Insurance Group (NYSE: OB) is one of 86 public companies in the “Property & Casualty Insurance” industry, but how does it contrast to its rivals? We will compare OneBeacon Insurance Group to related businesses based on the strength of its profitability, valuation, analyst recommendations, earnings, risk, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for OneBeacon Insurance Group and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OneBeacon Insurance Group 0 0 0 0 N/A
OneBeacon Insurance Group Competitors 689 2401 2277 50 2.31

As a group, “Property & Casualty Insurance” companies have a potential downside of 6.21%. Given OneBeacon Insurance Group’s rivals higher possible upside, analysts plainly believe OneBeacon Insurance Group has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

17.3% of OneBeacon Insurance Group shares are owned by institutional investors. Comparatively, 60.2% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 76.6% of OneBeacon Insurance Group shares are owned by insiders. Comparatively, 15.7% of shares of all “Property & Casualty Insurance” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

OneBeacon Insurance Group pays an annual dividend of $0.84 per share and has a dividend yield of 4.6%. OneBeacon Insurance Group pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 15.4% of their earnings in the form of a dividend.

Risk & Volatility

OneBeacon Insurance Group has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, OneBeacon Insurance Group’s rivals have a beta of 0.89, suggesting that their average share price is 11% less volatile than the S&P 500.

Profitability

This table compares OneBeacon Insurance Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OneBeacon Insurance Group 0.10% -0.12% 0.03%
OneBeacon Insurance Group Competitors 6.30% 1.64% 1.26%

Earnings and Valuation

This table compares OneBeacon Insurance Group and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
OneBeacon Insurance Group N/A N/A 25.13
OneBeacon Insurance Group Competitors $11.51 billion $1.16 billion 155.88

OneBeacon Insurance Group’s rivals have higher revenue and earnings than OneBeacon Insurance Group. OneBeacon Insurance Group 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.

Summary

OneBeacon Insurance Group rivals beat OneBeacon Insurance Group on 9 of the 11 factors compared.

OneBeacon Insurance Group Company Profile

OneBeacon Insurance Group, Ltd. (OneBeacon) is a specialty property and casualty insurance writer that offers a range of insurance products in the United States. The Company’s segments include Specialty Products, Specialty Industries, and Investing, Financing and Corporate. As of December 31, 2016, the Specialty Products segment consisted of 10 underwriting operating segments representing an aggregation based on those that offer products, coverages and services to customers across the United States. As of December 31, 2016, the Specialty Industries segment consisted of six underwriting operating segments representing an aggregation based on those that focus on solving the needs of a particular customer or industry group. The Investing, Financing and Corporate segment includes the investing and financing activities for OneBeacon on a consolidated basis, and certain other activities conducted through the Company and its intermediate subsidiaries.

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