White Mountains Insurance Group (NYSE:WTM – Get Free Report) and MBIA (NYSE:MBI – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Profitability
This table compares White Mountains Insurance Group and MBIA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| White Mountains Insurance Group | 26.86% | 3.33% | 1.55% |
| MBIA | -153.33% | N/A | -1.54% |
Analyst Ratings
This is a summary of current recommendations and price targets for White Mountains Insurance Group and MBIA, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| White Mountains Insurance Group | 0 | 1 | 1 | 0 | 2.50 |
| MBIA | 1 | 0 | 1 | 0 | 2.00 |
MBIA has a consensus target price of $7.00, suggesting a potential upside of 52.51%. Given MBIA’s higher probable upside, analysts plainly believe MBIA is more favorable than White Mountains Insurance Group.
Insider & Institutional Ownership
88.7% of White Mountains Insurance Group shares are owned by institutional investors. Comparatively, 61.0% of MBIA shares are owned by institutional investors. 3.0% of White Mountains Insurance Group shares are owned by insiders. Comparatively, 11.3% of MBIA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
White Mountains Insurance Group has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, MBIA has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Valuation and Earnings
This table compares White Mountains Insurance Group and MBIA”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| White Mountains Insurance Group | $3.73 billion | 1.45 | $1.11 billion | $377.51 | 5.99 |
| MBIA | $80.00 million | 2.93 | -$177.00 million | ($3.21) | -1.43 |
White Mountains Insurance Group has higher revenue and earnings than MBIA. MBIA is trading at a lower price-to-earnings ratio than White Mountains Insurance Group, indicating that it is currently the more affordable of the two stocks.
Summary
White Mountains Insurance Group beats MBIA on 9 of the 13 factors compared between the two stocks.
About White Mountains Insurance Group
White Mountains Insurance Group is a holding company focused on property and casualty insurance, reinsurance and related financial services. Rather than operating as a single insurer, it owns and invests in businesses with distinct specialties. Its businesses include Ark, a global specialty insurance and reinsurance group; HG Global, which provides financial backing for municipal bond insurance through Build America Mutual; and Kudu, which offers permanent capital solutions to asset and wealth management firms.
About MBIA
MBIA Inc. is a financial services company best known for providing financial guarantee insurance. Through its subsidiaries, it has insured or reinsured payments on municipal bonds and other public finance obligations, as well as structured finance and international public finance transactions. Its National Public Finance Guarantee Corporation focuses on U.S. public finance, while MBIA Insurance Corporation has legacy exposure to structured finance and international public finance. The company is primarily managing existing insurance policies rather than originating a broad range of new business.
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