Greenlight Capital Re (NASDAQ:GLRE) and Heritage Insurance (NYSE:HRTG) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Volatility and Risk
Greenlight Capital Re has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Heritage Insurance has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
This table compares Greenlight Capital Re and Heritage Insurance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Greenlight Capital Re||-58.95%||-36.91%||-10.89%|
This is a summary of recent recommendations for Greenlight Capital Re and Heritage Insurance, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Greenlight Capital Re||0||0||0||0||N/A|
Heritage Insurance has a consensus price target of $17.50, indicating a potential upside of 24.29%. Given Heritage Insurance’s higher probable upside, analysts plainly believe Heritage Insurance is more favorable than Greenlight Capital Re.
Valuation & Earnings
This table compares Greenlight Capital Re and Heritage Insurance’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Greenlight Capital Re||$183.03 million||1.70||-$350.05 million||N/A||N/A|
|Heritage Insurance||$480.17 million||0.88||$27.16 million||$1.38||10.20|
Heritage Insurance has higher revenue and earnings than Greenlight Capital Re.
Insider and Institutional Ownership
48.3% of Greenlight Capital Re shares are held by institutional investors. Comparatively, 64.3% of Heritage Insurance shares are held by institutional investors. 21.4% of Greenlight Capital Re shares are held by insiders. Comparatively, 12.0% of Heritage Insurance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Greenlight Capital Re does not pay a dividend. Heritage Insurance pays out 17.4% of its earnings in the form of a dividend. Heritage Insurance has raised its dividend for 2 consecutive years.
Heritage Insurance beats Greenlight Capital Re on 10 of the 14 factors compared between the two stocks.
About Greenlight Capital Re
Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurer worldwide. The company offers various property reinsurance products and services, including automobile physical damage; personal lines, such as homeowners' insurance; and commercial lines. It also provides casualty reinsurance products and services comprising general liability, motor liability, professional liability, and worker's compensation; and accident and health, mortgage insurance, surety, trade credit, marine, aviation, energy, cyber, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was founded in 2004 and is headquartered in Grand Cayman, the Cayman Islands.
About Heritage Insurance
Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family homeowners and condominium owners; rental property insurance; and commercial residential insurance in Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New York, New Jersey, North Carolina, Rhode Island, and South Carolina, as well as residential wind-only property insurance. As of December 31, 2018, it had approximately 512,793 personal residential policies and 3,000 commercial residential policies. The company markets and writes its voluntary personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as indirectly to approximately 1,500 retail locations through 8 wholesale agency relationships. It also provides restoration, and emergency and recovery services; and property management, retail agency, and reinsurance services. The company was founded in 2012 and is headquartered in Clearwater, Florida.
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