Employers (NYSE:EIG – Get Free Report) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it weigh in compared to its peers? We will compare Employers to related companies based on the strength of its valuation, risk, analyst recommendations, earnings, institutional ownership, profitability and dividends.
Dividends
Employers pays an annual dividend of $1.36 per share and has a dividend yield of 2.9%. Employers pays out 80.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 30.4% of their earnings in the form of a dividend. Employers has raised its dividend for 4 consecutive years.
Analyst Ratings
This is a breakdown of current ratings for Employers and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Employers | 0 | 2 | 1 | 0 | 2.33 |
| Employers Competitors | 3328 | 15655 | 16511 | 739 | 2.40 |
Employers presently has a consensus price target of $59.00, indicating a potential upside of 25.01%. As a group, “Insurance” companies have a potential upside of 4.85%. Given Employers’ higher probable upside, equities research analysts plainly believe Employers is more favorable than its peers.
Insider and Institutional Ownership
80.5% of Employers shares are held by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are held by institutional investors. 1.3% of Employers shares are held by company insiders. Comparatively, 13.6% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Employers and its peers top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Employers | $787.60 million | $10.80 million | 27.93 |
| Employers Competitors | $15.48 billion | $1.70 billion | 34.35 |
Employers’ peers have higher revenue and earnings than Employers. Employers is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Employers has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Employers’ peers have a beta of -1.59, suggesting that their average share price is 259% less volatile than the S&P 500.
Profitability
This table compares Employers and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Employers | 3.49% | 5.82% | 1.49% |
| Employers Competitors | 9.05% | -9.83% | 4.11% |
Summary
Employers peers beat Employers on 10 of the 15 factors compared.
Employers Company Profile
Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers’ compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands. The company markets its products through local, regional, and national agents and brokers; alternative distribution channels; and 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 Henderson, Nevada.
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