Critical Review: MBIA (NYSE:MBI) and Everest Group (NYSE:EG)

MBIA (NYSE:MBI) and Everest Group (NYSE:EG) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for MBIA and Everest Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MBIA	1	0	1	0	2.00
Everest Group	0	12	5	0	2.29

MBIA presently has a consensus price target of $7.50, suggesting a potential upside of 18.95%. Everest Group has a consensus price target of $373.73, suggesting a potential upside of 4.95%. Given MBIA’s higher probable upside, research analysts clearly believe MBIA is more favorable than Everest Group.

Risk & Volatility

MBIA has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Everest Group has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Profitability

This table compares MBIA and Everest Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MBIA	-172.22%	N/A	-1.71%
Everest Group	11.76%	14.70%	3.63%

Insider & Institutional Ownership

61.0% of MBIA shares are owned by institutional investors. Comparatively, 92.6% of Everest Group shares are owned by institutional investors. 11.3% of MBIA shares are owned by company insiders. Comparatively, 0.7% of Everest Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares MBIA and Everest Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MBIA	$80.00 million	4.01	-$177.00 million	($3.10)	-2.03
Everest Group	$17.50 billion	0.81	$1.59 billion	$49.17	7.24

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

Summary

Everest Group beats MBIA on 10 of the 14 factors compared between the two stocks.

About MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.