Validus (NYSE:VR) and Global Indemnity (NASDAQ:GBLI) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Institutional and Insider Ownership
82.0% of Validus shares are held by institutional investors. Comparatively, 56.1% of Global Indemnity shares are held by institutional investors. 2.3% of Validus shares are held by company insiders. Comparatively, 41.4% of Global Indemnity shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Validus and Global Indemnity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Validus pays an annual dividend of $1.52 per share and has a dividend yield of 2.2%. Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. Validus has increased its dividend for 4 consecutive years.
This is a summary of recent recommendations and price targets for Validus and Global Indemnity, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings and Valuation
This table compares Validus and Global Indemnity’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Indemnity||$498.94 million||0.83||-$56.70 million||N/A||N/A|
Validus has higher earnings, but lower revenue than Global Indemnity.
Validus beats Global Indemnity on 5 of the 8 factors compared between the two stocks.
Validus Holdings, Ltd. provides reinsurance coverage, insurance coverage, and insurance linked securities management services worldwide. It operates through three segments: Reinsurance, Insurance, and Asset Management. The Reinsurance segment underwrites property reinsurance products on a catastrophe excess of loss, per risk excess of loss and proportional basis; and aerospace and aviation, agriculture, composite, marine, technical lines, terrorism, trade credit, workers' compensation, and other specialty lines, as well as casualty and financial lines. The Insurance segment underwrites property, accident and health, agriculture, aviation, contingency, marine, and political lines insurance products; bankers blanket bond, commercial crime, computer crime, cyber- crime, professional indemnity, and directors' and officers' insurance products for various financial institutions and other companies; and commercial and institutional risks comprising general, professional, and product liability, as well as miscellaneous malpractice insurance products. This segment also underwrites marine and energy liability, and political risk insurance products, as well as insurance products for repair, maintenance, and upkeep of aircrafts and premises for small companies. The Asset Management segment manages capital for third parties through insurance-linked securities, and other property catastrophe and specialty reinsurance investments. Validus Holdings, Ltd. was founded in 2005 and is based in Pembroke, Bermuda.
About Global Indemnity
Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States and internationally. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under construction and renovation dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watersports primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was incorporated in 2016 and is based in George Town, the Cayman Islands.
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