White Mountains Insurance Group (WTM) versus ProAssurance Corporation (PRA) Critical Analysis
White Mountains Insurance Group (NYSE: WTM) and ProAssurance Corporation (NYSE:PRA) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Volatility & Risk
White Mountains Insurance Group has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, ProAssurance Corporation has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.
Insider & Institutional Ownership
88.0% of White Mountains Insurance Group shares are owned by institutional investors. Comparatively, 79.8% of ProAssurance Corporation shares are owned by institutional investors. 5.1% of White Mountains Insurance Group shares are owned by insiders. Comparatively, 1.8% of ProAssurance Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for White Mountains Insurance Group and ProAssurance Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|White Mountains Insurance Group||0||0||0||0||N/A|
ProAssurance Corporation has a consensus price target of $58.33, indicating a potential upside of 7.43%. Given ProAssurance Corporation’s higher probable upside, analysts clearly believe ProAssurance Corporation is more favorable than White Mountains Insurance Group.
White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. ProAssurance Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 2.3%. White Mountains Insurance Group pays out 4.5% of its earnings in the form of a dividend. ProAssurance Corporation pays out 44.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Earnings and Valuation
This table compares White Mountains Insurance Group and ProAssurance Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|White Mountains Insurance Group||$1.43 billion||2.55||$98.90 million||$22.39||38.00|
|ProAssurance Corporation||$890.60 million||3.26||$212.38 million||$2.78||19.53|
ProAssurance Corporation has higher revenue, but lower earnings than White Mountains Insurance Group. ProAssurance Corporation is trading at a lower price-to-earnings ratio than White Mountains Insurance Group, indicating that it is currently the more affordable of the two stocks.
This table compares White Mountains Insurance Group and ProAssurance Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|White Mountains Insurance Group||9.80%||1.01%||0.57%|
ProAssurance Corporation beats White Mountains Insurance Group on 8 of the 14 factors compared between the two stocks.
About White Mountains Insurance Group
White Mountains Insurance Group, Ltd. is a holding company. The Company’s principal businesses are conducted through its insurance subsidiaries and other affiliates. Its segments include OneBeacon, HG Global/BAM and Other Operations. The OneBeacon segment consists of the operations of OneBeacon Insurance Group, Ltd. (OneBeacon Ltd.), which owns a family of property and casualty insurance companies, and Split Rock Insurance, Ltd. (Split Rock), a reinsurance company (collectively, OneBeacon). The HG Global/BAM segment consists of the operations of HG Global Ltd. (HG Global) and Build America Mutual Assurance Company (BAM). The Other Operations segment consists of the Company and its intermediate holding companies, its investment management subsidiary, White Mountains Advisors LLC, and certain consolidated and unconsolidated private capital investments. OneBeacon is a specialty property and casualty insurance provider that offers a range of insurance products in the United States.
About ProAssurance Corporation
ProAssurance Corporation (ProAssurance) is a holding company for property and casualty insurance companies. The Company provides professional liability insurance for healthcare professionals and facilities, professional liability insurance for attorneys, liability insurance for medical technology and life sciences risks, and workers’ compensation insurance. The Company operates through four segments. The Specialty property and casualty segment includes the Company’s professional liability business, and medical technology and life sciences business. The Workers’ compensation segment includes its workers’ compensation business. Lloyd’s Syndicate 1729 (Syndicate 1729) segment includes business of Syndicate 1729, which underwrites risks over a range of property and casualty insurance and reinsurance lines. The Corporate segment includes the Company’s investment operations managed at the corporate level and non-premium revenues generated outside of its insurance entities.
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