Critical Contrast: Global Indemnity (NASDAQ:GBLI) and James River Group (NASDAQ:JRVR)

Global Indemnity (NASDAQ:GBLI) and James River Group (NASDAQ:JRVR) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Global Indemnity and James River Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Indemnity $498.94 million 0.71 -$56.70 million N/A N/A
James River Group $885.60 million 1.26 $63.83 million $2.33 15.74

James River Group has higher revenue and earnings than Global Indemnity.

Risk and Volatility

Global Indemnity has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, James River Group has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Institutional and Insider Ownership

55.6% of Global Indemnity shares are held by institutional investors. Comparatively, 97.0% of James River Group shares are held by institutional investors. 42.1% of Global Indemnity shares are held by insiders. Comparatively, 3.5% of James River Group shares are held by 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.

Profitability

This table compares Global Indemnity and James River Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Indemnity -6.57% -2.95% -1.00%
James River Group 8.50% 10.62% 2.43%

Analyst Recommendations

This is a breakdown of current ratings for Global Indemnity and James River Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Indemnity 0 0 0 0 N/A
James River Group 1 2 0 0 1.67

James River Group has a consensus target price of $39.75, indicating a potential upside of 8.41%. Given James River Group’s higher possible upside, analysts clearly believe James River Group is more favorable than Global Indemnity.

Dividends

Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 4.0%. James River Group pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. James River Group pays out 51.5% of its earnings in the form of a dividend.

Summary

James River Group beats Global Indemnity on 8 of the 11 factors compared between the two stocks.

Global Indemnity Company Profile

Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States and internationally. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under construction and renovation dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watersports primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was incorporated in 2016 and is based in George Town, the Cayman Islands.

James River Group Company Profile

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance and reinsurance services in the United States. Its Excess and Surplus Lines segment underwrites liability and property insurance on an excess and surplus commercial lines basis in all states and the District of Columbia. This segment distributes its insurance policies primarily through wholesale insurance brokers. The company's Specialty Admitted Insurance segment provides workers' compensation coverage for building trades, healthcare employees, goods and services, light manufacturing, specialty transportation, agriculture, and fronting and program business in North Carolina, Tennessee, Virginia, South Carolina, Georgia, New Jersey, Missouri, Kansas, Pennsylvania, Massachusetts, Rhode Island, Alabama, Connecticut, and Mississippi. Its Casualty Reinsurance segment offers proportional and working layer casualty reinsurance to third parties and unaffiliated insurance companies. James River Group Holdings, Ltd. was founded in 2002 and is headquartered in Pembroke, Bermuda.

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