Essent Group (NYSE:ESNT – Get Free Report) and Greenlight Capital Re (NASDAQ:GLRE – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Insider & Institutional Ownership
93.0% of Essent Group shares are held by institutional investors. Comparatively, 41.5% of Greenlight Capital Re shares are held by institutional investors. 3.6% of Essent Group shares are held by insiders. Comparatively, 24.7% of Greenlight Capital Re shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations and price targets for Essent Group and Greenlight Capital Re, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Essent Group | 0 | 7 | 3 | 0 | 2.30 |
| Greenlight Capital Re | 0 | 1 | 1 | 0 | 2.50 |
Profitability
This table compares Essent Group and Greenlight Capital Re’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Essent Group | 53.64% | 12.01% | 9.28% |
| Greenlight Capital Re | 11.47% | 11.69% | 3.70% |
Risk and Volatility
Essent Group has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Greenlight Capital Re has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.
Earnings & Valuation
This table compares Essent Group and Greenlight Capital Re”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Essent Group | $1.26 billion | 4.18 | $689.97 million | $7.02 | 8.15 |
| Greenlight Capital Re | $729.78 million | 0.68 | $74.83 million | $2.37 | 6.35 |
Essent Group has higher revenue and earnings than Greenlight Capital Re. Greenlight Capital Re is trading at a lower price-to-earnings ratio than Essent Group, indicating that it is currently the more affordable of the two stocks.
Summary
Essent Group beats Greenlight Capital Re on 12 of the 14 factors compared between the two stocks.
About Essent Group
Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its mortgage insurance products include primary, pool, and master policy. The company also provides information technology maintenance and development services; customer support-related services; underwriting consulting; and contract underwriting services, as well as risk management products and title insurance and settlement services. It serves the originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions, and other lenders. Essent Group Ltd. was incorporated in 2008 and is based in Hamilton, Bermuda.
About Greenlight Capital Re
Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurance company worldwide. The company offers various property reinsurance products and services, including automobile physical damage, personal lines, and commercial lines. It also provides casualty reinsurance products and services comprising general liability, motor liability, professional liability, and worker's compensation; and accident and health, transactional liability, mortgage insurance, surety, trade credit, marine, and energy, as well as other specialty products, such as aviation, crop, cyber, political, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was incorporated in 2004 and is headquartered in Grand Cayman, the Cayman Islands.
Receive News & Ratings for Essent Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Essent Group and related companies with MarketBeat.com's FREE daily email newsletter.
