Enstar Group (NYSE: TRV) and Travelers Companies (NYSE:TRV) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Valuation and Earnings

This table compares Enstar Group and Travelers Companies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enstar Group $1.11 billion 4.14 $311.45 million N/A N/A
Travelers Companies $28.90 billion 1.20 $2.06 billion $7.28 17.76

Travelers Companies has higher revenue and earnings than Enstar Group.

Analyst Ratings

This is a summary of recent ratings and target prices for Enstar Group and Travelers Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enstar Group 0 0 0 0 N/A
Travelers Companies 2 8 5 0 2.20

Travelers Companies has a consensus target price of $136.79, suggesting a potential upside of 5.56%. Given Travelers Companies’ higher possible upside, analysts clearly believe Travelers Companies is more favorable than Enstar Group.

Insider and Institutional Ownership

71.0% of Enstar Group shares are owned by institutional investors. Comparatively, 79.0% of Travelers Companies shares are owned by institutional investors. 10.0% of Enstar Group shares are owned by insiders. Comparatively, 0.8% of Travelers Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Enstar Group has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Travelers Companies has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares Enstar Group and Travelers Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enstar Group 14.62% 6.02% 1.30%
Travelers Companies 6.89% 8.84% 1.98%

Dividends

Travelers Companies pays an annual dividend of $3.08 per share and has a dividend yield of 2.4%. Enstar Group does not pay a dividend. Travelers Companies pays out 42.3% of its earnings in the form of a dividend. Travelers Companies has raised its dividend for 9 consecutive years.

Summary

Travelers Companies beats Enstar Group on 10 of the 15 factors compared between the two stocks.

Enstar Group Company Profile

Enstar Group Limited acquires and manages insurance and reinsurance companies, and portfolios of insurance and reinsurance business in run-off. It operates in three segments: Non-Life Run-Off, Atrium, and StarStone. The Non-Life Run-Off segment engages in the running off property and casualty, and other non-life lines of businesses. It also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, and IT consulting services to the insurance and reinsurance industry. The Atrium segment is involved in underwriting various classes, including marine, aviation, transit, property and casualty binding authorities, reinsurance, accident and health, and non marine direct and facultative. The StarStone segment offers a range of property, casualty, and specialty insurance products to large multi-national, and small and middle-market clients. The company operates in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and internationally. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited as a result of its merger with The Enstar Group, Inc. in January 2007. Enstar Group Limited was founded in 2001 and is headquartered in Hamilton, Bermuda.

Travelers Companies Company Profile

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial transportation industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, program managers, and specialized retail agents. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty insurance products. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. The company distributes its products primarily through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

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