Reviewing W.R. Berkley (WRB) & Its Rivals

W.R. Berkley (NYSE:WRB) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it weigh in compared to its competitors? We will compare W.R. Berkley to similar companies based on the strength of its valuation, earnings, risk, profitability, dividends, analyst recommendations and institutional ownership.

Dividends

W.R. Berkley pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. W.R. Berkley pays out 8.5% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 31.1% of their earnings in the form of a dividend. W.R. Berkley has increased its dividend for 23 consecutive years.

Insider & Institutional Ownership

68.8% of W.R. Berkley shares are held by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are held by institutional investors. 25.1% of W.R. Berkley shares are held by insiders. Comparatively, 13.4% of shares of all “Insurance” companies are held 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.

Valuation & Earnings

This table compares W.R. Berkley and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
W.R. Berkley	$14.71 billion	$1.78 billion	16.31
W.R. Berkley Competitors	$15.27 billion	$1.70 billion	33.62

W.R. Berkley’s competitors have higher revenue, but lower earnings than W.R. Berkley. W.R. Berkley 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 and Risk

W.R. Berkley has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, W.R. Berkley’s competitors have a beta of -1.59, suggesting that their average stock price is 259% less volatile than the S&P 500.

Profitability

This table compares W.R. Berkley and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W.R. Berkley	12.53%	19.70%	4.27%
W.R. Berkley Competitors	8.64%	-9.90%	4.10%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for W.R. Berkley and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W.R. Berkley	6	9	3	0	1.83
W.R. Berkley Competitors	3344	15711	16557	746	2.40

W.R. Berkley presently has a consensus target price of $70.56, suggesting a potential downside of 8.54%. As a group, “Insurance” companies have a potential upside of 4.49%. Given W.R. Berkley’s competitors stronger consensus rating and higher probable upside, analysts plainly believe W.R. Berkley has less favorable growth aspects than its competitors.

Summary

W.R. Berkley beats its competitors on 8 of the 15 factors compared.

About W.R. Berkley

W.R. Berkley Corporation is an insurance holding company that provides commercial property and casualty insurance, reinsurance, and related services. Its offerings include coverage for businesses and professionals across areas such as property, casualty, workers’ compensation, transportation, and specialty risks. Founded in 1967 by William R. Berkley, the company operates through a group of insurance businesses with expertise in specific markets and customer needs. Its operations serve customers in the United States and select international markets.