Greenlight Capital Re (NASDAQ:GLRE) & Allstate (NASDAQ:ALL) Critical Analysis

Allstate (NYSE:ALL) and Greenlight Capital Re (NASDAQ:GLRE) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership

77.3% of Allstate shares are owned by institutional investors. Comparatively, 48.3% of Greenlight Capital Re shares are owned by institutional investors. 1.6% of Allstate shares are owned by company insiders. Comparatively, 21.4% of Greenlight Capital Re shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Allstate and Greenlight Capital Re, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allstate 1 7 6 0 2.36
Greenlight Capital Re 0 0 0 0 N/A

Allstate currently has a consensus price target of $103.75, suggesting a potential downside of 0.15%. Given Allstate’s higher probable upside, equities analysts clearly believe Allstate is more favorable than Greenlight Capital Re.

Profitability

This table compares Allstate and Greenlight Capital Re’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allstate 6.26% 12.66% 2.31%
Greenlight Capital Re -58.95% -36.91% -10.89%

Earnings and Valuation

This table compares Allstate and Greenlight Capital Re’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allstate $39.82 billion 0.87 $2.25 billion $8.07 12.88
Greenlight Capital Re $183.03 million 1.72 -$350.05 million N/A N/A

Allstate has higher revenue and earnings than Greenlight Capital Re.

Dividends

Allstate pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. Greenlight Capital Re does not pay a dividend. Allstate pays out 24.8% of its earnings in the form of a dividend. Allstate has increased its dividend for 8 consecutive years.

Volatility and Risk

Allstate has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Greenlight Capital Re has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Summary

Allstate beats Greenlight Capital Re on 10 of the 14 factors compared between the two stocks.

About Allstate

The Allstate Corporation, through its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The company operates through Allstate Protection, Service Businesses, Allstate Life, and Allstate Benefits segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance; other personal lines products, such as renter, condominium, landlord, boat, umbrella, and manufactured home insurance; and commercial lines products under the Allstate, Esurance, and Encompass brand names. The Service Businesses segment provides consumer electronics and appliance protection plans covering TVs, smartphones, and computers; device and mobile data collection services, analytics and customer risk assessment solutions, and telematics services; roadside assistance services, such as towing, jump-start, lockout, fuel delivery, and tire change services; and vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel protection, and paintless dent repair protection services under the SquareTrade, Arity, Allstate Roadside Services, and Allstate Dealer Services brands. The Allstate Life Segment offers term, whole, interest-sensitive, and variable life insurance products, as well as non-proprietary retirement product solutions offered by third-party providers. Its Allstate Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products. The company sells its products through agencies, as well as directly through contact centers and Internet; and financial specialists, brokers, relationships with wholesale partners, and affinity groups. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

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.

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