Greenlight Capital Re (NASDAQ:GLRE – Get Free Report) and Ambac Financial Group (NYSE:AMBC – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Earnings and Valuation
This table compares Greenlight Capital Re and Ambac Financial Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Greenlight Capital Re | $656.17 million | 0.67 | $42.82 million | ($0.07) | -185.29 |
| Ambac Financial Group | $249.54 million | 1.60 | -$556.45 million | ($15.34) | -0.59 |
Insider and Institutional Ownership
41.5% of Greenlight Capital Re shares are owned by institutional investors. Comparatively, 84.5% of Ambac Financial Group shares are owned by institutional investors. 23.5% of Greenlight Capital Re shares are owned by company insiders. Comparatively, 6.2% of Ambac Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Greenlight Capital Re and Ambac Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Greenlight Capital Re | 5.37% | 5.75% | 1.81% |
| Ambac Financial Group | -215.40% | -3.50% | -0.49% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Greenlight Capital Re and Ambac Financial Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Greenlight Capital Re | 0 | 1 | 0 | 0 | 2.00 |
| Ambac Financial Group | 1 | 0 | 1 | 0 | 2.00 |
Ambac Financial Group has a consensus target price of $15.00, indicating a potential upside of 64.71%. Given Ambac Financial Group’s higher possible upside, analysts plainly believe Ambac Financial Group is more favorable than Greenlight Capital Re.
Risk and Volatility
Greenlight Capital Re has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Ambac Financial Group has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Summary
Greenlight Capital Re beats Ambac Financial Group on 8 of the 13 factors compared between the two stocks.
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.
About Ambac Financial Group
Ambac Financial Group, Inc. operates as a financial services holding company. It operates three businesses: Specialty Property and Casualty Insurance, Insurance Distribution, and Legacy Financial Guarantee (LFG) Insurance. The Specialty Property and Casualty Insurance business provides specialty property and casualty program insurance with a focus commercial and personal liability risks. The Insurance Distribution business includes the specialty property and casualty insurance distribution business, which includes managing general agents and underwriters, insurance wholesalers, brokers, and other distribution businesses. The LFG Insurance business offers financial guarantee insurance policies that provide an unconditional and irrevocable guarantee, which protects the holder of a debt obligation against non-payment when due of the principal and interest on the obligations guaranteed. Ambac Financial Group, Inc. was incorporated in 1991 and is headquartered in New York, New York.
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