Critical Survey: Everest Re Group (RE) versus Platinum Underwriters Holdings (PTP)

Everest Re Group (NYSE: RE) and Platinum Underwriters Holdings (NYSE:PTP) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Everest Re Group and Platinum Underwriters Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everest Re Group 2 4 2 0 2.00
Platinum Underwriters Holdings 0 0 0 0 N/A

Everest Re Group currently has a consensus price target of $238.14, suggesting a potential upside of 0.01%. Given Everest Re Group’s higher probable upside, research analysts plainly believe Everest Re Group is more favorable than Platinum Underwriters Holdings.

Dividends

Everest Re Group pays an annual dividend of $5.00 per share and has a dividend yield of 2.1%. Platinum Underwriters Holdings does not pay a dividend. Everest Re Group pays out 17.1% of its earnings in the form of a dividend. Everest Re Group has raised its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Everest Re Group and Platinum Underwriters Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Everest Re Group $6.14 billion 1.59 $1.20 billion $29.16 8.17
Platinum Underwriters Holdings N/A N/A N/A N/A N/A

Everest Re Group has higher revenue and earnings than Platinum Underwriters Holdings.

Profitability

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

Net Margins Return on Equity Return on Assets
Everest Re Group 19.65% 13.60% 5.12%
Platinum Underwriters Holdings 24.85% 8.33% 3.89%

Insider & Institutional Ownership

92.3% of Everest Re Group shares are owned by institutional investors. 1.3% of Everest Re Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Everest Re Group beats Platinum Underwriters Holdings on 9 of the 11 factors compared between the two stocks.

About Everest Re Group

Everest Re Group, Ltd., through its subsidiaries, is engaged in the underwriting of reinsurance and insurance in the United States, Bermuda and international markets. The Company operates in segments: U.S. Reinsurance, International, Bermuda and Insurance segment. The Company underwrites reinsurance both through brokers and directly with ceding companies. The Company underwrites insurance principally through general agent relationships, brokers and surplus lines brokers. The Company offers treaty and facultative reinsurance, and admitted and non-admitted insurance. Its products include the range of property and casualty reinsurance, and insurance coverage’s, including marine, aviation, surety, errors and omissions liability (E&O), directors’ and officers’ liability (D&O), medical malpractice, other specialty lines, accident and health (A&H) and workers’ compensation. Its subsidiaries include Everest Reinsurance (Bermuda), Ltd. (Bermuda Re) and Everest International Reinsurance, Ltd.

About Platinum Underwriters Holdings

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.

Receive News & Ratings for Everest Re Group Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Everest Re Group Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply