Head to Head Comparison: Ms&Ad Insurance Group (OTCMKTS:MSADY) vs. Employers (OTCMKTS:EIG)

Ms&Ad Insurance Group (OTCMKTS:MSADY) and Employers (NYSE:EIG) 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, analyst recommendations, earnings, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ms&Ad Insurance Group and Employers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ms&Ad Insurance Group 0 0 1 0 3.00
Employers 0 1 1 0 2.50

Employers has a consensus target price of $50.00, suggesting a potential upside of 66.06%. Given Employers’ higher probable upside, analysts plainly believe Employers is more favorable than Ms&Ad Insurance Group.

Profitability

This table compares Ms&Ad Insurance Group and Employers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ms&Ad Insurance Group 5.73% 13.98% 1.69%
Employers 8.99% 7.47% 2.12%

Volatility and Risk

Ms&Ad Insurance Group has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Employers has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of Ms&Ad Insurance Group shares are owned by institutional investors. Comparatively, 80.9% of Employers shares are owned by institutional investors. 2.9% of Employers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Ms&Ad Insurance Group and Employers’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ms&Ad Insurance Group $49.62 billion 0.33 $1.73 billion $1.56 8.90
Employers $784.80 million 1.16 $157.10 million $3.20 9.41

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

Dividends

Ms&Ad Insurance Group pays an annual dividend of $0.30 per share and has a dividend yield of 2.2%. Employers pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. Ms&Ad Insurance Group pays out 19.2% of its earnings in the form of a dividend. Employers pays out 31.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Employers has raised its dividend for 4 consecutive years. Employers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Employers beats Ms&Ad Insurance Group on 10 of the 16 factors compared between the two stocks.

Ms&Ad Insurance Group Company Profile

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers various life and non-life insurance products, including fire and allied, marine, personal accident, voluntary automobile, compulsory automobile liability, medical and nursing care, and other insurance products; individual annuity insurance and whole life insurance products; and reinsurance services, as well as income guarantee insurance products. It also provides financial services, including asset management, financial guarantees, 401k, alternative risk transfer, personal finance, and venture capital finance; and risk management services. In addition, the company offers administration, credit guarantee, and loan services; and roadside assistance and house support services, as well as operates retirement homes and elderly daycare centers. MS&AD Insurance Group Holdings, Inc. provides its products and services through cross-selling, as well as other sales channels, including financial institution agents, life insurance professionals, and direct marketing. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

Employers Company Profile

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; alternative distribution channels comprising its partners; and through national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Reno, Nevada.

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