White Mountains Insurance Group (NYSE: WTM) and Meadowbrook Insurance Group (NYSE:MIG) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

81.9% of White Mountains Insurance Group shares are held by institutional investors. 5.1% of White Mountains Insurance Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares White Mountains Insurance Group and Meadowbrook Insurance Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
White Mountains Insurance Group $1.36 billion 2.45 $412.50 million $134.40 6.61
Meadowbrook Insurance Group N/A N/A N/A $0.53 16.30

White Mountains Insurance Group has higher revenue and earnings than Meadowbrook Insurance Group. White Mountains Insurance Group is trading at a lower price-to-earnings ratio than Meadowbrook Insurance Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares White Mountains Insurance Group and Meadowbrook Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
White Mountains Insurance Group 69.96% 1.32% 0.82%
Meadowbrook Insurance Group 4.54% 7.19% 1.16%

Analyst Recommendations

This is a summary of recent recommendations and price targets for White Mountains Insurance Group and Meadowbrook Insurance Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
White Mountains Insurance Group 0 0 0 0 N/A
Meadowbrook Insurance Group 0 0 0 0 N/A

Dividends

White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. Meadowbrook Insurance Group does not pay a dividend. White Mountains Insurance Group pays out 0.7% of its earnings in the form of a dividend.

Summary

White Mountains Insurance Group beats Meadowbrook Insurance Group on 6 of the 9 factors compared between the two stocks.

About White Mountains Insurance Group

White Mountains Insurance Group, Ltd. is a holding company. The Company’s principal businesses are conducted through its insurance subsidiaries and other affiliates. Its segments include HG Global/BAM and Other Operations. The HG Global/BAM segment consists of the operations of HG Global Ltd. (HG Global) and Build America Mutual Assurance Company (BAM). The Other Operations segment consists of the Company and its intermediate holding companies, its investment management subsidiary, White Mountains Advisors LLC, and certain consolidated and unconsolidated private capital investments.

About Meadowbrook Insurance Group

Meadowbrook Insurance Group, Inc. (Meadowbrook) is a holding company. The Company is a commercial insurance underwriter and insurance administration services company. The Company markets and underwrites specialty property and casualty insurance programs and products through a network of independent retail agents, wholesalers, program administrators and general agents. The Company’s products include Admitted Programs and Standard Market Products, Main Street Excess and Surplus Lines, Non-Admitted Programs, and Specialty Market Products. The Company is also involved in a range of activities, including program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control and reinsurance. The Company also provides the following services to its fee-for-service and agency clients: administration of risk-bearing entities and agency services.

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