Atlas Financial (NYSE: RNR) and RenaissanceRe (NYSE:RNR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Volatility & Risk

Atlas Financial has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, RenaissanceRe has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Earnings & Valuation

This table compares Atlas Financial and RenaissanceRe’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlas Financial $221.98 million 0.57 -$38.81 million ($3.62) -2.93
RenaissanceRe $2.10 billion 2.51 -$222.38 million ($8.35) -15.74

Atlas Financial has higher earnings, but lower revenue than RenaissanceRe. RenaissanceRe is trading at a lower price-to-earnings ratio than Atlas Financial, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

76.7% of Atlas Financial shares are owned by institutional investors. Comparatively, 97.3% of RenaissanceRe shares are owned by institutional investors. 15.1% of Atlas Financial shares are owned by company insiders. Comparatively, 1.5% of RenaissanceRe shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Atlas Financial and RenaissanceRe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Financial -16.52% -43.63% -9.59%
RenaissanceRe -11.73% -3.54% -0.91%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Atlas Financial and RenaissanceRe, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Financial 0 1 1 0 2.50
RenaissanceRe 0 5 2 0 2.29

Atlas Financial currently has a consensus price target of $17.00, indicating a potential upside of 60.38%. RenaissanceRe has a consensus price target of $142.00, indicating a potential upside of 8.06%. Given Atlas Financial’s stronger consensus rating and higher possible upside, research analysts clearly believe Atlas Financial is more favorable than RenaissanceRe.

Dividends

RenaissanceRe pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Atlas Financial does not pay a dividend. RenaissanceRe pays out -15.8% of its earnings in the form of a dividend. RenaissanceRe has raised its dividend for 13 consecutive years.

Summary

RenaissanceRe beats Atlas Financial on 10 of the 17 factors compared between the two stocks.

About Atlas Financial

Atlas Financial Holdings, Inc., through its subsidiaries, engages in underwriting commercial automobile insurance policies in the United States. Its automobile insurance products provide insurance coverage in three primary areas, including liability, accident benefits, and physical damage. The company focuses on the light commercial automobile sector, including taxi cabs, non-emergency para-transit, limousine, livery, and business autos. The company distributes its insurance products through a network of retail independent agents. Atlas Financial Holdings, Inc. is headquartered in Schaumburg, Illinois.

About RenaissanceRe

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance coverages in the United States and internationally. Its Property segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, such as earthquakes, hurricanes, and tsunamis, as well as claims arising from other natural and man-made catastrophes comprising winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, including proportional reinsurance, property per risk, property reinsurance, and binding facilities and regional U.S. multi-line reinsurance. The company's Casualty and Specialty segment writes various classes of products, such as directors and officers, and medical malpractice; automobile liability, casualty clash, employer's liability, umbrella or excess casualty, and workers' compensation; financial guaranty, mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. This segment also offers a range of casualty insurance products through Syndicate 1458, including general liability, medical malpractice, and professional liability. The company distributes its products and services primarily through intermediaries. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

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