XL Group (NYSE: XL) is one of 90 public companies in the “Property & Casualty Insurance” industry, but how does it contrast to its peers? We will compare XL Group to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Insider and Institutional Ownership

96.7% of XL Group shares are held by institutional investors. Comparatively, 60.0% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 3.0% of XL Group shares are held by company insiders. Comparatively, 15.3% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares XL Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XL Group -2.51% -4.03% -0.83%
XL Group Competitors 8.90% 4.07% 2.37%

Analyst Ratings

This is a summary of current ratings and price targets for XL Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XL Group 1 5 6 0 2.42
XL Group Competitors 590 2174 2048 44 2.32

XL Group currently has a consensus target price of $45.55, indicating a potential upside of 14.75%. As a group, “Property & Casualty Insurance” companies have a potential upside of 2.52%. Given XL Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe XL Group is more favorable than its peers.

Earnings and Valuation

This table compares XL Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
XL Group $10.55 billion $440.96 million -32.27
XL Group Competitors $11.72 billion $1.18 billion 125.28

XL Group’s peers have higher revenue and earnings than XL Group. XL Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

XL Group pays an annual dividend of $0.88 per share and has a dividend yield of 2.2%. XL Group pays out -71.5% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 34.6% of their earnings in the form of a dividend. XL Group has increased its dividend for 4 consecutive years. XL Group is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility and Risk

XL Group has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, XL Group’s peers have a beta of 0.92, meaning that their average share price is 8% less volatile than the S&P 500.

About XL Group

XL Group plc is an insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises. The Company operates through two segments: Insurance and Reinsurance. The Company’s Insurance segment is organized into four product divisions: Global Casualty (Casualty); Global Energy Property, & Construction (EPC); Global Professional (Professional), and Global Specialty (Specialty). Its insurance operations provide insurance policies for corporate risks that may require large limits, use of a captive insurance company and the need for a program of locally issued policies. The Reinsurance segment provides casualty, property risk, property catastrophe, specialty, and other reinsurance lines on a global basis with business being written on both a proportional and non-proportional treaty basis, and also on a facultative basis.

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