Critical Survey: XL Group (XL) & Its Rivals
XL Group (NYSE: XL) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it compare to its competitors? We will compare XL Group to related businesses based on the strength of its dividends, analyst recommendations, earnings, institutional ownership, profitability, risk and valuation.
Institutional and Insider Ownership
95.3% of XL Group shares are owned by institutional investors. Comparatively, 61.1% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 3.0% of XL Group shares are owned by insiders. Comparatively, 15.4% of shares of all “Property & Casualty Insurance” companies are owned by 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.
This is a summary of current ratings and target prices for XL Group and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|XL Group Competitors||616||2253||2144||42||2.32|
XL Group currently has a consensus price target of $45.45, suggesting a potential upside of 6.93%. As a group, “Property & Casualty Insurance” companies have a potential downside of 1.29%. Given XL Group’s stronger consensus rating and higher probable upside, research analysts clearly believe XL Group is more favorable than its competitors.
Valuation and Earnings
This table compares XL Group and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|XL Group||$11.02 billion||$1.47 billion||13.80|
|XL Group Competitors||$11.75 billion||$2.00 billion||36.49|
XL Group’s competitors have higher revenue and earnings than XL Group. XL Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
XL Group has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, XL Group’s competitors have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.
This table compares XL Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|XL Group Competitors||9.97%||5.21%||2.69%|
XL Group pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. XL Group pays out 28.6% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 26.9% of their earnings in the form of a dividend. XL Group has increased its dividend for 4 consecutive years.
XL Group competitors beat XL Group on 9 of the 15 factors compared.
About XL Group
XL Group plc is an insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises. The Company operates through two segments: Insurance and Reinsurance. The Company’s Insurance segment is organized into four product divisions: Global Casualty (Casualty); Global Energy Property, & Construction (EPC); Global Professional (Professional), and Global Specialty (Specialty). Its insurance operations provide insurance policies for corporate risks that may require large limits, use of a captive insurance company and the need for a program of locally issued policies. The Reinsurance segment provides casualty, property risk, property catastrophe, specialty, and other reinsurance lines on a global basis with business being written on both a proportional and non-proportional treaty basis, and also on a facultative basis.
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