Global Indemnity (NASDAQ: GBLI) and Leucadia National (NYSE:LUK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Institutional and Insider Ownership
56.4% of Global Indemnity shares are owned by institutional investors. Comparatively, 75.4% of Leucadia National shares are owned by institutional investors. 53.3% of Global Indemnity shares are owned by company insiders. Comparatively, 10.2% of Leucadia National shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Leucadia National pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Leucadia National pays out 24.2% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Global Indemnity and Leucadia National’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Indemnity||$485.52 million||1.15||-$9.55 million||N/A||N/A|
|Leucadia National||$11.44 billion||0.68||$171.72 million||$1.65||13.19|
Leucadia National has higher revenue and earnings than Global Indemnity.
Volatility & Risk
Global Indemnity has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Leucadia National has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Global Indemnity and Leucadia National, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Global Indemnity and Leucadia National’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Leucadia National beats Global Indemnity on 7 of the 12 factors compared between the two stocks.
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.
About Leucadia National
Leucadia National Corporation operates as a diversified holding company that focuses on financial service businesses and investments in the Americas, Europe, and Asia. Its services include equities research, sales, and trading; financing, securities lending, and other brokerage; wealth management; fixed income sales and trading; futures; equity capital markets, debt capital markets, and financial advisory; and asset management services. The company also provides online foreign exchange trading, contract for difference trading, spread betting, and related services. In addition, it develops and owns residential and mixed-use real estate properties in California, New York, Florida, Virginia, South Carolina, and Maine; provides capital solutions, investment sales advisory, and mortgage servicing for multifamily and commercial properties; and purchases automobile installment contracts, as well as owns and manages a portfolio of leases on used Harley-Davidson motorcycles. Further, it processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer-ready beef and pork, and wet blue leather; oil and gas properties in the Bakken Shale oil field in North Dakota and Montana, and the Denver-Julesburg Basin in Wyoming; owns and operates 28 automobile dealerships; offers fixed wireless broadband services in Italy; manufactures and markets plastic netting and wood products; and mines gold and silver ores. The company was formerly known as Talcott National Corp. and changed its name to Leucadia National Corporation in June 1980. Leucadia National Corporation was founded in 1968 and is headquartered in New York, New York.
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