Employers Holdings (NYSE: EIG) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its competitors? We will compare Employers Holdings to similar businesses based on the strength of its earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Volatility and Risk

Employers Holdings has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Employers Holdings’ competitors have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.

Dividends

Employers Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Employers Holdings pays out 18.6% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 26.9% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Employers Holdings and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Employers Holdings $773.40 million $148.80 million 14.66
Employers Holdings Competitors $11.75 billion $2.00 billion 36.26

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

Profitability

This table compares Employers Holdings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Employers Holdings 13.72% 10.25% 2.32%
Employers Holdings Competitors 10.13% 5.31% 2.72%

Insider and Institutional Ownership

77.3% of Employers Holdings shares are owned by institutional investors. Comparatively, 61.1% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 4.0% of Employers Holdings 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 company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Employers Holdings and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Employers Holdings 1 1 0 0 1.50
Employers Holdings Competitors 608 2248 2134 42 2.32

Employers Holdings currently has a consensus target price of $36.00, indicating a potential downside of 23.73%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.79%. Given Employers Holdings’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Employers Holdings has less favorable growth aspects than its competitors.

Summary

Employers Holdings competitors beat Employers Holdings on 10 of the 15 factors compared.

About Employers Holdings

Employers Holdings, Inc. is a holding company. Through its insurance subsidiaries, the Company provides workers’ compensation insurance coverage to select, small businesses in low to medium hazard industries. It provides workers’ compensation insurance under a statutory system wherein employers are required to provide coverage for their employees’ medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses. As of December 31, 2016 the Company provided workers’ compensation insurance in 36 states and the District of Columbia, with a concentration in California. Its insurance subsidiaries include Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC) and Employers Assurance Company (EAC). The Company’s insurance products are jointly offered and marketed with and through its partners and alliances.

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