Critical Review: Assurant (AIZ) versus Its Competitors

Assurant (NYSE: AIZ) is one of 24 public companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its rivals? We will compare Assurant to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for Assurant and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assurant 1 0 1 0 2.00
Assurant Competitors 112 796 844 21 2.44

Assurant currently has a consensus price target of $115.00, suggesting a potential upside of 17.04%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 4.22%. Given Assurant’s higher possible upside, analysts plainly believe Assurant is more favorable than its rivals.

Risk & Volatility

Assurant has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Assurant’s rivals have a beta of 1.36, indicating that their average share price is 36% more volatile than the S&P 500.

Profitability

This table compares Assurant and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Assurant 3.67% 3.55% 0.48%
Assurant Competitors 3.80% 9.18% 2.33%

Dividends

Assurant pays an annual dividend of $2.12 per share and has a dividend yield of 2.2%. Assurant pays out 50.7% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.1% and pay out 45.6% of their earnings in the form of a dividend. Assurant has raised its dividend for 13 consecutive years.

Earnings and Valuation

This table compares Assurant and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Assurant $7.53 billion $565.35 million 23.51
Assurant Competitors $11.13 billion $534.17 million 148.62

Assurant’s rivals have higher revenue, but lower earnings than Assurant. Assurant is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

91.1% of Assurant shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 0.8% of Assurant shares are owned by insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Assurant rivals beat Assurant on 10 of the 15 factors compared.

Assurant Company Profile

Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.

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