Analyzing Direct Line Insurance Group (DIISY) and Its Peers

Insider & Institutional Ownership

0.3% of Direct Line Insurance Group shares are held by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are held by institutional investors. 13.8% of shares of all “Insurance” companies 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.

Earnings and Valuation

This table compares Direct Line Insurance Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Direct Line Insurance Group	N/A	N/A	20.09
Direct Line Insurance Group Competitors	$15.56 billion	$1.69 billion	33.98

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

Dividends

Direct Line Insurance Group pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Direct Line Insurance Group pays out 54.1% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 30.0% of their earnings in the form of a dividend. Direct Line Insurance Group lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Direct Line Insurance Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Direct Line Insurance Group	N/A	N/A	N/A
Direct Line Insurance Group Competitors	10.35%	11.03%	4.12%

Summary

Direct Line Insurance Group competitors beat Direct Line Insurance Group on 9 of the 9 factors compared.

About Direct Line Insurance Group

Direct Line Insurance Group plc engages in the provision of general insurance products and services in the United Kingdom. The company operates through Motor, Home, Rescue and Other Personal Lines, and Commercial segments. It offers motor, home, van, landlord, rescue, pet, tradesperson, business, creditor and select, and travel insurance products, as well as commercial insurance for small and medium-sized enterprises. The company also provides management, motor accident vehicle repair, insurance intermediary, support and operational, legal, software development, and breakdown recovery services. It sells its insurance products directly, through price comparison websites and phone, and through partners and brokers under the Direct Line, Churchill, Privilege, Darwin, Green Flag, Direct Line for Business, DLG Partnerships, DLG Auto Services, and DLG Legal Services brands. The company was formerly known as RBS Insurance Group Limited and changed its name to Direct Line Insurance Group plc in February 2012. Direct Line Insurance Group plc was founded in 1985 and is based in Bromley, the United Kingdom.