Financial Analysis: Hiscox (HCXLF) vs. Its Competitors

Hiscox (OTCMKTS:HCXLF) is one of 316 public companies in the “Insurance” industry, but how does it compare to its peers? We will compare Hiscox to similar companies based on the strength of its earnings, profitability, valuation, institutional ownership, dividends, analyst recommendations and risk.

Earnings & Valuation

This table compares Hiscox and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hiscox	N/A	N/A	38.17
Hiscox Competitors	$15.43 billion	$1.70 billion	32.63

Hiscox’s peers have higher revenue and earnings than Hiscox. Hiscox is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Hiscox and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hiscox	0	0	2	0	3.00
Hiscox Competitors	3182	15190	15988	656	2.40

As a group, “Insurance” companies have a potential upside of 5.48%. Given Hiscox’s peers higher possible upside, analysts clearly believe Hiscox has less favorable growth aspects than its peers.

Profitability

This table compares Hiscox and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hiscox	N/A	N/A	N/A
Hiscox Competitors	10.72%	10.89%	3.96%

Insider and Institutional Ownership

59.1% of Hiscox shares are held by institutional investors. Comparatively, 55.7% 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Hiscox pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Hiscox pays out 12.3% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 31.2% of their earnings in the form of a dividend.

Summary

Hiscox peers beat Hiscox on 8 of the 13 factors compared.

About Hiscox

Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, Europe, the United States, and internationally. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It offers commercial insurance for small-and medium-sized businesses; and personal lines cover, including high-value household, fine art, and luxury motor, as well as artwork, antiques, classic cars, jewelry, collectables, and other assets through brokers, partners, and direct-to-consumers. The company also provides property insurance; marine, specialty, and energy insurance; space and aviation insurance; casualty insurance; specialty insurance; terrorism, kidnap, and ransom insurance; and other specialty insurance products. In addition, it offers healthcare and casualty reinsurance services, as well as investment services. Hiscox Ltd was founded in 1901 and is headquartered in Pembroke, Bermuda.