Erie Indemnity (NASDAQ: ERIE) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its rivals? We will compare Erie Indemnity to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, valuation, profitability and earnings.

Institutional and Insider Ownership

31.0% of Erie Indemnity shares are owned by institutional investors. Comparatively, 61.2% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 46.8% of Erie Indemnity shares are owned by insiders. Comparatively, 15.3% of shares of all “Property & Casualty Insurance” companies are owned by 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Erie Indemnity 12.73% 25.11% 13.76%
Erie Indemnity Competitors 10.03% 5.29% 2.69%

Analyst Ratings

This is a summary of recent recommendations and price targets for Erie Indemnity and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Erie Indemnity 0 0 0 0 N/A
Erie Indemnity Competitors 721 2536 2247 70 2.30

As a group, “Property & Casualty Insurance” companies have a potential upside of 1.79%. Given Erie Indemnity’s rivals higher probable upside, analysts clearly believe Erie Indemnity has less favorable growth aspects than its rivals.

Dividends

Erie Indemnity pays an annual dividend of $3.13 per share and has a dividend yield of 2.6%. Erie Indemnity pays out 78.4% 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 26.6% of their earnings in the form of a dividend. Erie Indemnity has increased its dividend for 21 consecutive years.

Volatility and Risk

Erie Indemnity has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Erie Indemnity’s rivals have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Erie Indemnity and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Erie Indemnity $1.65 billion $303.02 million 29.67
Erie Indemnity Competitors $11.75 billion $2.00 billion 35.11

Erie Indemnity’s rivals have higher revenue and earnings than Erie Indemnity. Erie Indemnity 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

Erie Indemnity rivals beat Erie Indemnity on 7 of the 12 factors compared.

About Erie Indemnity

Erie Indemnity Company is a management company. The Company serves as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange (Exchange). The Exchange is a reciprocal insurer that writes property and casualty insurance. The Company’s function is to perform certain services for the Exchange relating to the sales, underwriting and issuance of policies on behalf of the Exchange. The sales related services the Company provides include agent compensation, and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written, as well as additional commissions and bonuses to agents. The underwriting services the Company provides include underwriting and policy processing expenses. It provides information technology services that supports various functions. The remaining services the Company provides include customer service and administrative costs.

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