Assured Guaranty (NYSE: AGO) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it compare to its rivals? We will compare Assured Guaranty to related companies based on the strength of its dividends, profitability, valuation, institutional ownership, risk, analyst recommendations and earnings.

Dividends

Assured Guaranty pays an annual dividend of $0.57 per share and has a dividend yield of 1.6%. Assured Guaranty pays out 8.2% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 32.7% of their earnings in the form of a dividend. Assured Guaranty has increased its dividend for 5 consecutive years. Assured Guaranty is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Assured Guaranty and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Assured Guaranty $1.68 billion $881.00 million 5.25
Assured Guaranty Competitors $11.51 billion $1.16 billion 151.25

Assured Guaranty’s rivals have higher revenue and earnings than Assured Guaranty. Assured Guaranty 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.

Profitability

This table compares Assured Guaranty and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Assured Guaranty 45.38% 10.69% 4.89%
Assured Guaranty Competitors 8.96% 4.45% 2.48%

Risk & Volatility

Assured Guaranty has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Assured Guaranty’s rivals have a beta of 0.92, meaning that their average stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Assured Guaranty and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assured Guaranty 0 1 2 0 2.67
Assured Guaranty Competitors 621 2289 2174 44 2.32

Assured Guaranty presently has a consensus price target of $47.00, suggesting a potential upside of 28.52%. As a group, “Property & Casualty Insurance” companies have a potential upside of 2.41%. Given Assured Guaranty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Assured Guaranty is more favorable than its rivals.

Insider and Institutional Ownership

97.0% of Assured Guaranty shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 2.6% of Assured Guaranty shares are owned by insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies 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.

Summary

Assured Guaranty beats its rivals on 10 of the 15 factors compared.

About Assured Guaranty

Assured Guaranty Ltd. is a holding company. The Company, through its subsidiaries, provides credit protection products to the United States and international public finance, including infrastructure, and structured finance markets. It applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. It guarantees obligations issued principally in the United States and the United Kingdom and also guarantees obligations issued in other countries and regions, including Australia and Western Europe. It also provides other forms of insurance that are in line with its risk profile and benefit from its underwriting experience.

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