Contrasting Endurance Specialty Holdings (ENH) & Loews Corporation (L)

Endurance Specialty Holdings (NYSE: ENH) and Loews Corporation (NYSE:L) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

This table compares Endurance Specialty Holdings and Loews Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endurance Specialty Holdings 4.79% 1.62% 0.82%
Loews Corporation 8.44% 4.84% 1.47%

Institutional & Insider Ownership

82.7% of Endurance Specialty Holdings shares are owned by institutional investors. Comparatively, 58.6% of Loews Corporation shares are owned by institutional investors. 5.8% of Endurance Specialty Holdings shares are owned by insiders. Comparatively, 11.8% of Loews Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Endurance Specialty Holdings and Loews Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endurance Specialty Holdings 0 4 0 0 2.00
Loews Corporation 1 1 0 0 1.50

Endurance Specialty Holdings currently has a consensus target price of $93.00, suggesting a potential upside of 0.02%. Loews Corporation has a consensus target price of $39.00, suggesting a potential downside of 16.81%. Given Endurance Specialty Holdings’ stronger consensus rating and higher possible upside, research analysts plainly believe Endurance Specialty Holdings is more favorable than Loews Corporation.

Dividends

Endurance Specialty Holdings pays an annual dividend of $1.52 per share and has a dividend yield of 1.6%. Loews Corporation pays an annual dividend of $0.25 per share and has a dividend yield of 0.5%. Endurance Specialty Holdings pays out 25.3% of its earnings in the form of a dividend. Loews Corporation pays out 7.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Loews Corporation has increased its dividend for 6 consecutive years.

Earnings and Valuation

This table compares Endurance Specialty Holdings and Loews Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Endurance Specialty Holdings N/A N/A N/A $6.00 15.50
Loews Corporation $13.28 billion 1.19 $3.33 billion $3.32 14.12

Loews Corporation has higher revenue and earnings than Endurance Specialty Holdings. Loews Corporation is trading at a lower price-to-earnings ratio than Endurance Specialty Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Endurance Specialty Holdings has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Loews Corporation has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Summary

Loews Corporation beats Endurance Specialty Holdings on 8 of the 13 factors compared between the two stocks.

About Endurance Specialty Holdings

Endurance Specialty Holdings Ltd. is a holding company. The Company, through its operating subsidiaries in Bermuda, the United States and the United Kingdom, focuses on underwriting specialty lines of personal and commercial property, and casualty insurance and reinsurance. It operates through two segments: Insurance and Reinsurance. In the Insurance segment, it writes agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation insurance. In the Reinsurance segment, it writes catastrophe, property, casualty, professional lines and specialty reinsurance. Its Insurance and Reinsurance segments both include property-related coverages, which provide insurance or reinsurance of an insurable interest in tangible property for property loss, damage or loss of use. In addition, its Insurance and Reinsurance segments include various casualty insurance and reinsurance coverages, which are concerned with the losses caused by injuries to third parties.

About Loews Corporation

Loews Corporation is a holding company. The Company, through its subsidiaries, is engaged in commercial property and casualty insurance; operation of offshore oil and gas drilling rigs; transportation and storage of natural gas and natural gas liquids, and operation of a chain of hotels. The Company has five segments consisted of its four individual operating subsidiaries, CNA Financial Corporation (CNA), Diamond Offshore Drilling, Inc. (Diamond Offshore), Boardwalk Pipeline Partners, LP (Boardwalk Pipeline) and Loews Hotels Holding Corporation (Loews Hotels), and the Corporate segment. CNA’s insurance products include commercial property and casualty coverages, including surety. CNA’s services include risk management, information services, warranty and claims administration. CNA’s core business, commercial property and casualty insurance operations include Specialty, Commercial and International lines of business.

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