National General Holdings Corp (NGHC) vs. Its Competitors Critical Review
National General Holdings Corp (NASDAQ: NGHC) is one of 22 public companies in the “Multiline Insurance & Brokers” industry, but how does it compare to its rivals? We will compare National General Holdings Corp to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, valuation, risk, dividends and profitability.
Insider and Institutional Ownership
45.6% of National General Holdings Corp shares are held by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 3.4% of National General Holdings Corp shares are held by company insiders. Comparatively, 15.5% of shares of all “Multiline Insurance & Brokers” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of recent ratings for National General Holdings Corp and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National General Holdings Corp||0||1||3||0||2.75|
|National General Holdings Corp Competitors||112||797||845||21||2.44|
National General Holdings Corp currently has a consensus price target of $27.00, suggesting a potential upside of 30.69%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.69%. Given National General Holdings Corp’s stronger consensus rating and higher probable upside, research analysts plainly believe National General Holdings Corp is more favorable than its rivals.
Valuation and Earnings
This table compares National General Holdings Corp and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|National General Holdings Corp||$3.55 billion||$172.21 million||21.30|
|National General Holdings Corp Competitors||$11.13 billion||$534.17 million||161.92|
National General Holdings Corp’s rivals have higher revenue and earnings than National General Holdings Corp. National General Holdings Corp 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.
National General Holdings Corp pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. National General Holdings Corp pays out 16.5% 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 49.8% of their earnings in the form of a dividend.
This table compares National General Holdings Corp and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National General Holdings Corp||2.62%||7.30%||1.44%|
|National General Holdings Corp Competitors||3.58%||2.63%||1.22%|
Volatility & Risk
National General Holdings Corp has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, National General Holdings Corp’s rivals have a beta of 1.29, suggesting that their average share price is 29% more volatile than the S&P 500.
National General Holdings Corp rivals beat National General Holdings Corp on 8 of the 15 factors compared.
About National General Holdings Corp
National General Holdings Corp. is a specialty personal lines insurance holding company. Through its subsidiaries, the Company provides a range of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche products. It operates through two segments: Property and Casualty (P&C) and Accident and Health (A&H). Its P&C segment offers its P&C insurance products through a network of agents, a number of affinity partners and through direct-response marketing programs. Its A&H segment provides accident and non-major medical health insurance products targeting its existing P&C policyholders and the anticipated market of employed persons who are uninsured or underinsured. The P&C segment operates its business through three distribution channels: agency, affinity and direct. The A&H segment provides supplemental accident and health insurance products.
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