Critical Analysis: Assurant (AIZ) and Its Peers
Assurant (NYSE: AIZ) is one of 22 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it compare to its rivals? We will compare Assurant to similar companies based on the strength of its earnings, institutional ownership, risk, dividends, profitability, analyst recommendations and valuation.
This table compares Assurant and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Assurant pays an annual dividend of $2.12 per share and has a dividend yield of 2.1%. Assurant pays out 50.7% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 49.7% of their earnings in the form of a dividend. Assurant has raised its dividend for 13 consecutive years.
This is a breakdown of recent ratings and price targets for Assurant and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Assurant currently has a consensus price target of $115.00, suggesting a potential upside of 16.33%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 4.40%. Given Assurant’s higher possible upside, equities analysts clearly believe Assurant is more favorable than its rivals.
Valuation and Earnings
This table compares Assurant and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Assurant||$7.53 billion||$565.35 million||23.65|
|Assurant Competitors||$11.13 billion||$534.17 million||144.24|
Assurant’s rivals have higher revenue, but lower earnings than Assurant. Assurant is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
91.1% of Assurant shares are held by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 0.8% of Assurant shares are held by insiders. Comparatively, 15.5% of shares of all “Multiline Insurance & Brokers” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Assurant has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Assurant’s rivals have a beta of 1.39, suggesting that their average share price is 39% more volatile than the S&P 500.
Assurant rivals beat Assurant on 10 of the 15 factors compared.
Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.
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