Validus Holdings (VR) & Platinum Underwriters Holdings (PTP) Financial Analysis

Validus Holdings (NYSE: VR) and Platinum Underwriters Holdings (NYSE:PTP) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Validus Holdings and Platinum Underwriters Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Validus Holdings 11.81% 7.75% 2.55%
Platinum Underwriters Holdings 24.85% 8.33% 3.89%

Insider & Institutional Ownership

93.5% of Validus Holdings shares are held by institutional investors. 2.3% of Validus Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Validus Holdings and Platinum Underwriters Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Validus Holdings 0 3 2 0 2.40
Platinum Underwriters Holdings 0 0 0 0 N/A

Validus Holdings presently has a consensus target price of $56.20, indicating a potential upside of 12.99%. Given Validus Holdings’ higher probable upside, equities analysts plainly believe Validus Holdings is more favorable than Platinum Underwriters Holdings.

Dividends

Validus Holdings pays an annual dividend of $1.52 per share and has a dividend yield of 3.1%. Platinum Underwriters Holdings does not pay a dividend. Validus Holdings pays out 41.9% of its earnings in the form of a dividend. Validus Holdings has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Validus Holdings and Platinum Underwriters Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Validus Holdings $2.48 billion 1.59 $538.06 million $3.63 13.70
Platinum Underwriters Holdings N/A N/A N/A N/A N/A

Validus Holdings has higher revenue and earnings than Platinum Underwriters Holdings.

Summary

Validus Holdings beats Platinum Underwriters Holdings on 7 of the 11 factors compared between the two stocks.

Validus Holdings Company Profile

Validus Holdings, Ltd. is a holding company. The Company operates through four segments: Validus Re, Talbot, Western World and AlphaCat. Validus Re is a Bermuda-based reinsurance segment focused treaty reinsurance. Validus Re concentrates on first-party property and other reinsurance risks. Talbot is a specialty insurance segment operating within the Lloyd’s insurance market through Syndicate 1183. The Talbot segment is focused on a range of marine and energy, political lines, commercial property, financial lines, contingency, accident and health and aviation classes of business. Western World is a specialty excess and surplus lines insurance segment operating within the United States commercial market. AlphaCat is a Bermuda-based investment advisor, managing capital from third parties and the Company in insurance linked securities and other investments in the property catastrophe reinsurance space.

Platinum Underwriters Holdings Company Profile

Platinum Underwriters Holdings, Ltd. (Platinum Holdings) is a holding company. Through its reinsurance subsidiaries the Company provides property and marine, casualty and finite risk reinsurance coverage to a diverse clientele of insurers and select reinsurers on a worldwide basis. The Company operates through two licensed reinsurance subsidiaries: Platinum Underwriters Bermuda, Ltd. (Platinum Bermuda), a Bermuda reinsurance company, and Platinum Underwriters Reinsurance, Inc. (Platinum US), a United States reinsurance company. Platinum Bermuda is a wholly owned subsidiary of Platinum Holdings and Platinum US is a wholly owned subsidiary of Platinum Finance. The Company operates in three segments: Property and Marine, Casualty and Finite Risk. The Property and Marine provides insurance coverage against loss of property. Casualty provides coverage for loss or damage to persons or property. The Finite Risk offers non-traditional reinsurance.

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