Critical Analysis: OneBeacon Insurance Group (OB) vs. Alterra Capital (ALTE)

Alterra Capital (NASDAQ: ALTE) and OneBeacon Insurance Group (NYSE:OB) are both companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Valuation and Earnings

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This table compares Alterra Capital and OneBeacon Insurance Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alterra Capital N/A N/A N/A N/A N/A
OneBeacon Insurance Group N/A N/A N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Alterra Capital and OneBeacon Insurance Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alterra Capital 0 0 0 0 N/A
OneBeacon Insurance Group 0 0 0 0 N/A

Insider and Institutional Ownership

17.3% of OneBeacon Insurance Group shares are held by institutional investors. 76.6% of OneBeacon Insurance Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Alterra Capital and OneBeacon Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alterra Capital N/A N/A N/A
OneBeacon Insurance Group 0.10% -0.12% 0.03%

Dividends

OneBeacon Insurance Group pays an annual dividend of $0.84 per share and has a dividend yield of 4.6%. Alterra Capital does not pay a dividend.

Summary

OneBeacon Insurance Group beats Alterra Capital on 5 of the 6 factors compared between the two stocks.

Alterra Capital Company Profile

Alterra Capital Holdings Limited (Alterra) is engaged in providing diversified specialty insurance and reinsurance products to corporations, public entities and property and casualty insurers. In Bermuda, the Company conducts its insurance and reinsurance operations through Alterra Bermuda. In Europe, the Company conducts its non-Lloyd’s operations primarily from Dublin, Ireland through Alterra Europe. In the United States, the Company’s U.S. reinsurance operations are conducted through Alterra Re USA, a Connecticut-domiciled reinsurance company. The Company’s U.S. insurance operations are conducted through Alterra E&S. In Latin America, the Company provides reinsurance to clients through Alterra at Lloyd’s in Rio de Janeiro, Brazil, using Lloyd’s admitted status, through Alterra Europe. In June 2012, the Company formed New Point V Limited. On May 1, 2013, Alterra Capital was acquired by Markel Corporation.

OneBeacon Insurance Group Company Profile

OneBeacon Insurance Group, Ltd. (OneBeacon) is a specialty property and casualty insurance writer that offers a range of insurance products in the United States. The Company’s segments include Specialty Products, Specialty Industries, and Investing, Financing and Corporate. As of December 31, 2016, the Specialty Products segment consisted of 10 underwriting operating segments representing an aggregation based on those that offer products, coverages and services to customers across the United States. As of December 31, 2016, the Specialty Industries segment consisted of six underwriting operating segments representing an aggregation based on those that focus on solving the needs of a particular customer or industry group. The Investing, Financing and Corporate segment includes the investing and financing activities for OneBeacon on a consolidated basis, and certain other activities conducted through the Company and its intermediate subsidiaries.

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