XL Group (NYSE:XL) and NI (NASDAQ:NODK) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for XL Group and NI, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XL Group 0 9 2 0 2.18
NI 0 0 0 0 N/A

XL Group presently has a consensus target price of $46.83, indicating a potential downside of 18.69%. Given XL Group’s higher probable upside, analysts clearly believe XL Group is more favorable than NI.

Risk & Volatility

XL Group has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, NI has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500.

Insider & Institutional Ownership

78.5% of XL Group shares are held by institutional investors. Comparatively, 19.5% of NI shares are held by institutional investors. 3.0% of XL Group shares are held by insiders. Comparatively, 0.4% of NI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

XL Group pays an annual dividend of $0.88 per share and has a dividend yield of 1.5%. NI does not pay a dividend. XL Group pays out -43.8% of its earnings in the form of a dividend. XL Group has raised its dividend for 5 consecutive years.

Profitability

This table compares XL Group and NI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XL Group -4.67% -4.21% -0.75%
NI 8.60% 6.74% 4.23%

Valuation and Earnings

This table compares XL Group and NI’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XL Group $11.33 billion 1.32 -$560.39 million ($2.01) -28.65
NI $189.14 million 2.00 $15.99 million N/A N/A

NI has lower revenue, but higher earnings than XL Group.

Summary

XL Group beats NI on 9 of the 15 factors compared between the two stocks.

XL Group Company Profile

XL Group Ltd, through its subsidiaries, operates as an insurance and reinsurance company worldwide. The company's Insurance segment offers primary and excess casualty, environmental liability, professional liability, property, excess and surplus lines, U.S. program/facilities, and construction business products. It also provides property and casualty products; insurance coverages for program administrators and managing general agents; mergers and acquisitions, and structured risk solutions; construction-related products and risk engineering services; and advanced loss of profits/delay in start-up, annual facilities for employers and contractors, commercial project builders, construction/contractors all risks, engineering/erection all risks, machinery breakdown, and other products. In addition, this segment offers aviation and satellite, marine, fine art and specie, private client, equine, livestock and aquaculture, energy, crisis management, political risk, credit and bond, London wholesale property and casualty, life, accident, and health products. The Reinsurance segment provides casualty reinsurance products, including general and professional liability, and automobile liability and workers' compensation; property reinsurance products comprising property catastrophe, risk excess of loss, and proportional products; specialty reinsurance products, such as energy, marine, aviation, and space; and other reinsurance products that include fidelity, surety, trade credit, accident and health, mortgage, and political risk. It also writes whole account capital gearing quota share contracts on select syndicates at Lloyd's. The company markets its products and services to the industrial, commercial, and professional firms; insurance companies; and other enterprises through international, national, and regional producers, acting as the brokers and representatives of policyholders. XL Group Ltd was founded in 1986 and is headquartered in Hamilton, Bermuda.

NI Company Profile

NI Holdings, Inc. underwrites property and casualty insurance products in North Dakota, South Dakota, Nebraska, Minnesota, Nevada, and Arizona. Its products include multi-peril crop, crop hail, private passenger automobile, farm owners, homeowners, and commercial property and liability insurance policies. The company distributes its insurance products through independent producers and agents. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. is a subsidiary of Nodak Mutual Group, Inc.

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