Critical Comparison: Greenlight Capital Re (GLRE) and The Competition

Greenlight Capital Re (NASDAQ: GLRE) is one of 150 public companies in the “INSURANCE” industry, but how does it contrast to its peers? We will compare Greenlight Capital Re to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Earnings & Valuation

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This table compares Greenlight Capital Re and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Greenlight Capital Re $645.67 million -$44.95 million -12.80
Greenlight Capital Re Competitors $15.88 billion $1.31 billion 9.22

Greenlight Capital Re’s peers have higher revenue and earnings than Greenlight Capital Re. Greenlight Capital Re 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.

Insider & Institutional Ownership

49.3% of Greenlight Capital Re shares are owned by institutional investors. Comparatively, 63.4% of shares of all “INSURANCE” companies are owned by institutional investors. 21.4% of Greenlight Capital Re shares are owned by company insiders. Comparatively, 13.1% of shares of all “INSURANCE” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Greenlight Capital Re and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Greenlight Capital Re -6.96% -5.14% -1.43%
Greenlight Capital Re Competitors 4.12% 3.23% 0.91%

Analyst Ratings

This is a summary of current ratings and recommmendations for Greenlight Capital Re and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Greenlight Capital Re 0 0 0 0 N/A
Greenlight Capital Re Competitors 924 3945 4484 215 2.42

As a group, “INSURANCE” companies have a potential downside of 4.84%. Given Greenlight Capital Re’s peers higher probable upside, analysts plainly believe Greenlight Capital Re has less favorable growth aspects than its peers.

Volatility & Risk

Greenlight Capital Re has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Greenlight Capital Re’s peers have a beta of 0.94, suggesting that their average stock price is 6% less volatile than the S&P 500.

Summary

Greenlight Capital Re peers beat Greenlight Capital Re on 9 of the 10 factors compared.

Greenlight Capital Re Company Profile

Greenlight Capital Re, Ltd. is a holding company. The Company analyzes its underwriting operations using two categories: frequency business, which is characterized as contracts containing a number of small losses emanating from multiple events, and severity business, which is characterized as contracts with the potential for significant losses emanating from one event or multiple events. It conducts its reinsurance operations through two licensed and regulated reinsurance entities: Greenlight Reinsurance, Ltd. (Greenlight Re), based in the Cayman Islands, and Greenlight Reinsurance Ireland, Ltd. (GRIL), based in Ireland. Greenlight Re is engaged in writing property and casualty reinsurance business, as well as long term business, such as life insurance, long term disability and long term care, among others. GRIL is a non-life reinsurance undertaking. Verdant Holding Company, Ltd. makes strategic investments in a select group of property and casualty insurers, and general agents.

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