Head to Head Contrast: Greenlight Capital Re (GLRE) & Safety Insurance Group (SAFT)

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Greenlight Capital Re (NASDAQ: SAFT) and Safety Insurance Group (NASDAQ:SAFT) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares Greenlight Capital Re and Safety Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Greenlight Capital Re -44.10% -25.61% -6.50%
Safety Insurance Group 7.73% 9.74% 3.72%

Risk & Volatility

Greenlight Capital Re has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Safety Insurance Group has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Greenlight Capital Re $645.67 million 0.70 -$44.95 million ($1.21) -10.00
Safety Insurance Group $839.11 million 1.79 $62.38 million N/A N/A

Safety Insurance Group has higher revenue and earnings than Greenlight Capital Re.

Dividends

Safety Insurance Group pays an annual dividend of $3.20 per share and has a dividend yield of 3.3%. Greenlight Capital Re does not pay a dividend.

Analyst Ratings

This is a summary of recent ratings for Greenlight Capital Re and Safety Insurance Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Greenlight Capital Re 0 0 1 0 3.00
Safety Insurance Group 0 1 0 0 2.00

Greenlight Capital Re currently has a consensus price target of $25.00, suggesting a potential upside of 106.61%. Safety Insurance Group has a consensus price target of $70.00, suggesting a potential downside of 28.68%. Given Greenlight Capital Re’s stronger consensus rating and higher possible upside, equities analysts clearly believe Greenlight Capital Re is more favorable than Safety Insurance Group.

Institutional and Insider Ownership

43.3% of Greenlight Capital Re shares are owned by institutional investors. Comparatively, 80.2% of Safety Insurance Group shares are owned by institutional investors. 21.4% of Greenlight Capital Re shares are owned by company insiders. Comparatively, 4.9% of Safety Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Safety Insurance Group beats Greenlight Capital Re on 9 of the 14 factors compared between the two stocks.

Greenlight Capital Re Company Profile

Greenlight Capital Re, Ltd., through its subsidiaries, engages in the provision of property and casualty reinsurance products and services worldwide. Its frequency business comprises contracts containing small losses emanating from multiple events and enables the clients to increase their underwriting capacity; and severity business includes contracts with the potential for significant losses emanating from one event or various events. The company offers various property reinsurance products and services that include commercial, motor, and personal; casualty reinsurance products and services, which include general liability, motor, professional, and worker's compensation; and specialty reinsurance products and services that include accident and health, financial, marine, and other products. It markets its products through reinsurance brokers. The company was founded in 2004 and is headquartered in Grand Cayman, the Cayman Islands.

Safety Insurance Group Company Profile

Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. The company's private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured's car occupants, and physical damage coverage for an insured's own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella policies, as well as underwrites dwelling fire insurance for non-owner occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies; and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is based in Boston, Massachusetts.

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