Global Indemnity Group (NASDAQ:GBLI) & Allstate (NYSE:ALL) Financial Contrast

Global Indemnity Group (NASDAQ:GBLI) and Allstate (NYSE:ALL) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Risk & Volatility

Global Indemnity Group has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Allstate has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.

Institutional and Insider Ownership

37.4% of Global Indemnity Group shares are owned by institutional investors. Comparatively, 76.5% of Allstate shares are owned by institutional investors. 47.1% of Global Indemnity Group shares are owned by company insiders. Comparatively, 1.5% of Allstate shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Global Indemnity Group and Allstate, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Indemnity Group	0	1	0	0	2.00
Allstate	3	10	7	2	2.36

Allstate has a consensus price target of $273.48, suggesting a potential upside of 2.43%. Given Allstate’s stronger consensus rating and higher possible upside, analysts plainly believe Allstate is more favorable than Global Indemnity Group.

Dividends

Global Indemnity Group pays an annual dividend of $1.40 per share and has a dividend yield of 6.3%. Allstate pays an annual dividend of $4.32 per share and has a dividend yield of 1.6%. Global Indemnity Group pays out 66.7% of its earnings in the form of a dividend. Allstate pays out 9.8% 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. Global Indemnity Group has increased its dividend for 1 consecutive years and Allstate has increased its dividend for 15 consecutive years.

Valuation & Earnings

This table compares Global Indemnity Group and Allstate”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Indemnity Group	$454.94 million	0.71	$25.33 million	$2.10	10.55
Allstate	$67.69 billion	0.98	$10.28 billion	$44.16	6.05

Allstate has higher revenue and earnings than Global Indemnity Group. Allstate is trading at a lower price-to-earnings ratio than Global Indemnity Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Global Indemnity Group and Allstate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Indemnity Group	6.74%	4.69%	1.94%
Allstate	16.57%	38.37%	9.29%

Summary

Allstate beats Global Indemnity Group on 14 of the 18 factors compared between the two stocks.

About Global Indemnity Group

Global Indemnity Group is a specialty property and casualty insurance and reinsurance company. Through its insurance operations, it offers coverage for niche commercial risks, including general liability, commercial property, professional liability and specialty programs. The company distributes products primarily through independent agents, brokers and wholesale partners. Its business includes Penn-America Group, which focuses on specialty commercial insurance, and reinsurance operations that take on risks from other insurers.

About Allstate

Allstate Corporation is a U.S.-based insurance company that provides property and casualty coverage and related protection products. Its offerings include auto, homeowners, renters, condominium, motorcycle and recreational vehicle insurance, as well as life insurance and roadside assistance. The company sells products through its Allstate-branded business and other businesses, including National General, using agents and direct-to-consumer channels. Allstate primarily serves customers in the United States.