Reviewing Global Indemnity Group (NASDAQ:GBLI) and Allstate (NYSE:ALL)

Allstate (NYSE:ALL) and Global Indemnity Group (NASDAQ:GBLI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Valuation & Earnings

This table compares Allstate and Global Indemnity Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allstate	$69.35 billion	1.00	$10.28 billion	$50.08	5.50
Global Indemnity Group	$450.10 million	0.70	$25.33 million	$2.35	9.23

Allstate has higher revenue and earnings than Global Indemnity Group. Allstate is trading at a lower price-to-earnings ratio than Global Indemnity Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Allstate pays an annual dividend of $4.32 per share and has a dividend yield of 1.6%. Global Indemnity Group pays an annual dividend of $1.40 per share and has a dividend yield of 6.5%. Allstate pays out 8.6% of its earnings in the form of a dividend. Global Indemnity Group pays out 59.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Allstate has increased its dividend for 15 consecutive years and Global Indemnity Group has increased its dividend for 1 consecutive years.

Volatility & Risk

Allstate has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Global Indemnity Group has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Profitability

This table compares Allstate and Global Indemnity Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allstate	18.97%	41.64%	9.82%
Global Indemnity Group	7.50%	5.56%	2.28%

Insider & Institutional Ownership

76.5% of Allstate shares are owned by institutional investors. Comparatively, 37.4% of Global Indemnity Group shares are owned by institutional investors. 1.5% of Allstate shares are owned by insiders. Comparatively, 47.1% of Global Indemnity Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Allstate and Global Indemnity Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allstate	3	9	8	2	2.41
Global Indemnity Group	0	1	0	0	2.00

Allstate presently has a consensus target price of $270.19, suggesting a potential downside of 1.93%. Given Allstate’s stronger consensus rating and higher probable upside, equities analysts plainly believe Allstate is more favorable than Global Indemnity Group.

Summary

Allstate beats Global Indemnity Group on 14 of the 18 factors compared between the two stocks.

About Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

About Global Indemnity Group

Global Indemnity Group, LLC, through its subsidiaries, provides specialty property and casualty insurance, and reinsurance products worldwide. It operates in two segments, Penn-America and Non-Core Operations. The company distributes property and general liability products for small commercial businesses through a network of wholesale general agents; and property and general liability niche products through program administrators with specific binding authority. It also provides third-party treaty reinsurance for casualty insurance and reinsurance companies through brokers/intermediaries. In addition, the company offers property and general liability products distributed using company administered systems, and includes collectibles, digital direct-to-consumer insurance coverage for owners of collections; and VacantExpress, insurance coverage for owners of properties under construction, renovation, vacant, or rented, distributed through wholesale general agents and retail agents. Global Indemnity Group, LLC was founded in 2003 and is headquartered in Bala Cynwyd, Pennsylvania.