Critical Review: Mapfre (MPFRF) & The Competition

Mapfre (OTCMKTS:MPFRF) is one of 316 publicly-traded companies in the “Insurance” industry, but how does it weigh in compared to its peers? We will compare Mapfre to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mapfre	N/A	N/A	N/A
Mapfre Competitors	10.30%	11.04%	4.11%

Analyst Recommendations

This is a summary of current ratings and target prices for Mapfre and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mapfre	1	1	0	0	1.50
Mapfre Competitors	3216	15298	16105	680	2.40

As a group, “Insurance” companies have a potential upside of 7.99%. Given Mapfre’s peers stronger consensus rating and higher possible upside, analysts plainly believe Mapfre has less favorable growth aspects than its peers.

Dividends

Mapfre pays an annual dividend of $0.10 per share and has a dividend yield of 1.9%. Mapfre pays out 40.1% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 30.0% of their earnings in the form of a dividend. Mapfre lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

13.6% of Mapfre shares are held by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are held by institutional investors. 13.8% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Mapfre and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mapfre	N/A	N/A	21.06
Mapfre Competitors	$15.64 billion	$1.69 billion	33.96

Mapfre’s peers have higher revenue and earnings than Mapfre. Mapfre 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.

Summary

Mapfre peers beat Mapfre on 13 of the 13 factors compared.

About Mapfre

Mapfre, S.A. engages in insurance, finance, securities, investment, and services business worldwide. The company offers life and non-life; health; accident; property and casualty protection comprising automobile and homeowner insurance, personal third-party liability and asset insurance, etc.; savings and investment; retirement; burial; travel; and leisure insurance solutions. It also provides insurance solutions for agriculture and livestock, as well as reinsurance services. In addition, the company provides pension and funeral services, as well as operates theme parks. The company offers its services to professionals, entrepreneurs, self-employed, and companies, as well as small, medium, and large corporations. It offers solutions for aviation, energy, industry, construction etc. The company was formerly known as Corporacion Mapfre and changed its name to Mapfre, S.A. in December 2006. Mapfre, S.A. was founded in 1933 and is headquartered in Majadahonda, Spain. Mapfre, S.A. operates as a subsidiary of Cartera Mapfre, S.L.