RenaissanceRe (NYSE:RNR) & Its Competitors Head-To-Head Review

RenaissanceRe (NYSE: RNR) is one of 73 public companies in the “Fire, marine, & casualty insurance” industry, but how does it contrast to its rivals? We will compare RenaissanceRe to similar companies based on the strength of its analyst recommendations, earnings, profitability, institutional ownership, risk, valuation and dividends.

Risk and Volatility

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RenaissanceRe has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, RenaissanceRe’s rivals have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Dividends

RenaissanceRe pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. RenaissanceRe pays out -15.8% of its earnings in the form of a dividend. As a group, “Fire, marine, & casualty insurance” companies pay a dividend yield of 1.5% and pay out 81.8% of their earnings in the form of a dividend. RenaissanceRe has increased its dividend for 13 consecutive years.

Institutional & Insider Ownership

95.0% of RenaissanceRe shares are owned by institutional investors. Comparatively, 60.9% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 1.5% of RenaissanceRe shares are owned by company insiders. Comparatively, 13.2% of shares of all “Fire, marine, & casualty insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for RenaissanceRe and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RenaissanceRe 0 5 2 0 2.29
RenaissanceRe Competitors 474 1901 1838 83 2.36

RenaissanceRe currently has a consensus price target of $145.43, suggesting a potential upside of 6.29%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 6.02%. Given RenaissanceRe’s higher possible upside, equities analysts clearly believe RenaissanceRe is more favorable than its rivals.

Valuation and Earnings

This table compares RenaissanceRe and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
RenaissanceRe $2.10 billion -$222.38 million -16.39
RenaissanceRe Competitors $12.77 billion $1.43 billion 21.25

RenaissanceRe’s rivals have higher revenue and earnings than RenaissanceRe. RenaissanceRe 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.

Profitability

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

Net Margins Return on Equity Return on Assets
RenaissanceRe -10.57% -7.68% -2.28%
RenaissanceRe Competitors 2.83% 0.58% -0.16%

Summary

RenaissanceRe rivals beat RenaissanceRe on 11 of the 14 factors compared.

RenaissanceRe Company Profile

RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverages and related services to a range of customers. The Company’s products include property, casualty and specialty reinsurance and certain insurance products principally distributed through intermediaries. Its segments include Property; Casualty and Specialty, and Other category. The Property segment consisted of catastrophe and other property reinsurance and insurance written on behalf of its operating subsidiaries and certain joint ventures managed by its ventures unit. The Casualty and Specialty segment consisted of casualty and specialty reinsurance and insurance written on behalf of its operating subsidiaries and certain joint ventures managed by its ventures unit. Its Other category includes its strategic investments, investments unit, corporate expenses, capital servicing. The Casualty and Specialty segment offers certain casualty insurance products through RenaissanceRe Syndicate 1458 (Syndicate 1458).

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