Contrasting Employers Holdings (EIG) and Its Rivals

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

Profitability

This table compares Employers Holdings and its rivals’ 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 10.08% 5.30% 2.71%

Volatility and Risk

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

Insider and Institutional Ownership

77.3% of Employers Holdings shares are owned by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 4.0% of Employers Holdings shares are owned by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by company 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.

Earnings and Valuation

This table compares Employers Holdings and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Employers Holdings $773.40 million $148.80 million 14.44
Employers Holdings Competitors $11.75 billion $2.00 billion 36.35

Employers Holdings’ rivals have higher revenue and earnings than Employers Holdings. Employers Holdings 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.

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 26.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Employers Holdings and its rivals, 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 603 2245 2127 42 2.32

Employers Holdings presently has a consensus price target of $36.00, indicating a potential downside of 22.58%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.48%. Given Employers Holdings’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Employers Holdings has less favorable growth aspects than its rivals.

Summary

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

Employers Holdings Company Profile

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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