Critical Analysis: White Mountains Insurance Group (WTM) vs. Its Peers

White Mountains Insurance Group (NYSE: WTM) is one of 89 public companies in the “Property & Casualty Insurance” industry, but how does it contrast to its rivals? We will compare White Mountains Insurance Group to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares White Mountains Insurance Group and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
White Mountains Insurance Group $1.36 billion $412.50 million 6.61
White Mountains Insurance Group Competitors $11.51 billion $1.16 billion 139.67

White Mountains Insurance Group’s rivals have higher revenue and earnings than White Mountains Insurance Group. White Mountains Insurance Group 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.

Insider and Institutional Ownership

59.7% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 5.1% of White Mountains Insurance Group 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, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares White Mountains Insurance Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
White Mountains Insurance Group 69.96% 1.32% 0.82%
White Mountains Insurance Group Competitors 8.78% 3.45% 2.18%

Dividends

White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. White Mountains Insurance Group pays out 0.7% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 13.3% of their earnings in the form of a dividend.

Volatility & Risk

White Mountains Insurance Group has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, White Mountains Insurance Group’s rivals have a beta of 0.90, suggesting that their average share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for White Mountains Insurance Group and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
White Mountains Insurance Group 0 0 0 0 N/A
White Mountains Insurance Group Competitors 624 2255 2127 45 2.32

As a group, “Property & Casualty Insurance” companies have a potential upside of 6.07%. Given White Mountains Insurance Group’s rivals higher possible upside, analysts clearly believe White Mountains Insurance Group has less favorable growth aspects than its rivals.

Summary

White Mountains Insurance Group rivals beat White Mountains Insurance Group on 10 of the 12 factors compared.

White Mountains Insurance Group Company Profile

White Mountains Insurance Group, Ltd. is a holding company. The Company’s principal businesses are conducted through its insurance subsidiaries and other affiliates. Its segments include HG Global/BAM and Other Operations. The HG Global/BAM segment consists of the operations of HG Global Ltd. (HG Global) and Build America Mutual Assurance Company (BAM). The Other Operations segment consists of the Company and its intermediate holding companies, its investment management subsidiary, White Mountains Advisors LLC, and certain consolidated and unconsolidated private capital investments.

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