Critical Survey: White Mountains Insurance Group (WTM) and Meadowbrook Insurance Group (MIG)

White Mountains Insurance Group (NYSE: WTM) and Meadowbrook Insurance Group (NYSE:MIG) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for White Mountains Insurance Group and Meadowbrook Insurance Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
White Mountains Insurance Group 0 0 0 0 N/A
Meadowbrook Insurance Group 0 0 0 0 N/A

Valuation and Earnings

This table compares White Mountains Insurance Group and Meadowbrook Insurance Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
White Mountains Insurance Group $1.36 billion 2.41 $412.50 million $134.40 6.50
Meadowbrook Insurance Group N/A N/A N/A $0.53 16.30

White Mountains Insurance Group has higher revenue and earnings than Meadowbrook Insurance Group. White Mountains Insurance Group is trading at a lower price-to-earnings ratio than Meadowbrook Insurance Group, indicating that it is currently the more affordable of the two stocks.

Dividends

White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. Meadowbrook Insurance Group does not pay a dividend. White Mountains Insurance Group pays out 0.7% of its earnings in the form of a dividend.

Profitability

This table compares White Mountains Insurance Group and Meadowbrook Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
White Mountains Insurance Group 69.96% 1.32% 0.82%
Meadowbrook Insurance Group 4.54% 7.19% 1.16%

Institutional & Insider Ownership

81.9% of White Mountains Insurance Group shares are held by institutional investors. 5.1% of White Mountains Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

White Mountains Insurance Group beats Meadowbrook Insurance Group on 6 of the 9 factors compared between the two stocks.

White Mountains Insurance Group Company Profile

White Mountains Insurance Group, Ltd. is a holding company. The Company’s principal businesses are conducted through its insurance subsidiaries and other affiliates. Its segments include HG Global/BAM and Other Operations. The HG Global/BAM segment consists of the operations of HG Global Ltd. (HG Global) and Build America Mutual Assurance Company (BAM). The Other Operations segment consists of the Company and its intermediate holding companies, its investment management subsidiary, White Mountains Advisors LLC, and certain consolidated and unconsolidated private capital investments.

Meadowbrook Insurance Group Company Profile

Meadowbrook Insurance Group, Inc. (Meadowbrook) is a holding company. The Company is a commercial insurance underwriter and insurance administration services company. The Company markets and underwrites specialty property and casualty insurance programs and products through a network of independent retail agents, wholesalers, program administrators and general agents. The Company’s products include Admitted Programs and Standard Market Products, Main Street Excess and Surplus Lines, Non-Admitted Programs, and Specialty Market Products. The Company is also involved in a range of activities, including program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control and reinsurance. The Company also provides the following services to its fee-for-service and agency clients: administration of risk-bearing entities and agency services.

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