Reviewing Palomar (NASDAQ:PLMR) & W. R. Berkley (NASDAQ:WRB)

Palomar (NASDAQ:PLMR) and W. R. Berkley (NYSE:WRB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Palomar and W. R. Berkley, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Palomar 0 1 5 0 2.83
W. R. Berkley 2 3 1 0 1.83

Palomar presently has a consensus target price of $24.50, suggesting a potential downside of 16.50%. W. R. Berkley has a consensus target price of $59.41, suggesting a potential downside of 13.69%. Given W. R. Berkley’s higher probable upside, analysts plainly believe W. R. Berkley is more favorable than Palomar.

Profitability

This table compares Palomar and W. R. Berkley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Palomar N/A N/A N/A
W. R. Berkley 8.81% 10.75% 2.39%

Insider & Institutional Ownership

0.3% of Palomar shares are owned by institutional investors. Comparatively, 72.6% of W. R. Berkley shares are owned by institutional investors. 21.7% of W. R. Berkley shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Palomar and W. R. Berkley’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Palomar N/A N/A N/A N/A N/A
W. R. Berkley $7.69 billion 1.64 $640.75 million $2.67 25.87

W. R. Berkley has higher revenue and earnings than Palomar.

Dividends

W. R. Berkley pays an annual dividend of $0.44 per share and has a dividend yield of 0.6%. Palomar does not pay a dividend. W. R. Berkley pays out 16.5% of its earnings in the form of a dividend. W. R. Berkley has increased its dividend for 9 consecutive years.

Summary

W. R. Berkley beats Palomar on 9 of the 12 factors compared between the two stocks.

About Palomar

There is no company description available for Palomar Holdings Inc.

About W. R. Berkley

W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment underwrites commercial insurance business, including premises operations, commercial automobile, property, products liability, and professional liability lines. It also provides workers' compensation, property casualty, general liability, professional liability, and excess and umbrella coverage insurance products, as well as coverages for technology, ambulatory surgery centers, chiropractors, and concierge physicians; accident and health insurance and reinsurance products; insurance for commercial risks; pollution liability and coverages to contractors, consultants, and owners; and liquor liability and inland marine coverage for small to medium-sized insureds. In addition, this segment offers directors and officers, and surety risk products, as well as products for life sciences and travel industries; coverage for excess liability, construction wrap-ups, and completed operations; cyber risk solutions; casualty, group life, and crime-related insurance products; personal lines insurance solutions, including home, condo/co-op, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical insurance products; and at-risk and alternative risk insurance program management services. The Reinsurance segment provides other insurance companies and self-insureds with assistance in managing their net risk through reinsurance on a portfolio basis through treaty reinsurance or on an individual basis through facultative reinsurance. W. R. Berkley Corporation was founded in 1967 and is headquartered in Greenwich, Connecticut.

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