Critical Analysis: Loews (L) versus Enstar Group (ESGR)

Share on StockTwits

Loews (NASDAQ: ESGR) and Enstar Group (NASDAQ:ESGR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Loews and Enstar Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Loews 0 2 1 0 2.33
Enstar Group 0 0 0 0 N/A

Loews currently has a consensus price target of $53.57, suggesting a potential upside of 6.86%. Given Loews’ higher possible upside, analysts plainly believe Loews is more favorable than Enstar Group.

Volatility and Risk

Loews has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Enstar Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Loews and Enstar Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Loews $13.74 billion 1.15 $1.16 billion $2.86 17.53
Enstar Group $1.11 billion 4.13 $311.45 million N/A N/A

Loews has higher revenue and earnings than Enstar Group.

Profitability

This table compares Loews and Enstar Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Loews 8.15% 4.11% 1.21%
Enstar Group 14.62% 6.02% 1.30%

Insider & Institutional Ownership

63.7% of Loews shares are owned by institutional investors. Comparatively, 78.2% of Enstar Group shares are owned by institutional investors. 12.3% of Loews shares are owned by insiders. Comparatively, 10.0% of Enstar Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Loews pays an annual dividend of $0.25 per share and has a dividend yield of 0.5%. Enstar Group does not pay a dividend. Loews pays out 8.7% of its earnings in the form of a dividend.

Summary

Enstar Group beats Loews on 8 of the 14 factors compared between the two stocks.

Loews Company Profile

Loews Corporation, through its subsidiaries, provides commercial property and casualty insurance in the United States, Canada, the United Kingdom, Continental Europe, and Singapore. The company offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages; commercial surety and fidelity bonds; and warranty and alternative risk services primarily for vehicles and cell phones. Its commercial property insurance products include standard and excess property, marine, and boiler and machinery coverages; and casualty insurance products comprise workers' compensation, general and product liability, commercial auto, and umbrella coverages. The company also provides loss-sensitive insurance programs; and risk management, information, and claims administration services. It markets its insurance products and services primarily through independent agents, brokers, and managing general underwriters. In addition, the company owns and operates 17 offshore drilling rigs consisting of 4 drillships; and 7 ultra-deepwater, 4 deepwater, and 2 mid-water semisubmersible rigs. Further, it is involved in the transportation and storage of natural gas and natural gas liquids (NGLs). It owns and operates natural gas pipelines covering approximately 13,880 miles of interconnected pipelines; approximately 455 miles of NGL pipelines in Louisiana and Texas; and underground storage fields with aggregate working gas capacity of approximately 205.0 billion cubic feet of natural gas. Additionally, it operates 24 hotels in the United States and Canada. The company was founded in 1954 and is headquartered in New York, New York.

Enstar Group Company Profile

Enstar Group Limited acquires and manages insurance and reinsurance companies, and portfolios of insurance and reinsurance business in run-off. It operates in three segments: Non-Life Run-Off, Atrium, and StarStone. The Non-Life Run-Off segment engages in the running off property and casualty, and other non-life lines of businesses. It also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, and IT consulting services to the insurance and reinsurance industry. The Atrium segment is involved in underwriting various classes, including marine, aviation, transit, property and casualty binding authorities, reinsurance, accident and health, and non marine direct and facultative. The StarStone segment offers a range of property, casualty, and specialty insurance products to large multi-national, and small and middle-market clients. The company operates in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and internationally. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited as a result of its merger with The Enstar Group, Inc. in January 2007. Enstar Group Limited was founded in 2001 and is headquartered in Hamilton, Bermuda.

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

Leave a Reply