White Mountains Insurance Group (WTM) versus AXIS Capital (AXS) Critical Survey

White Mountains Insurance Group (NYSE: WTM) and AXIS Capital (NYSE:AXS) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Volatility & Risk

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White Mountains Insurance Group has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, AXIS Capital has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Valuation and Earnings

This table compares White Mountains Insurance Group and AXIS Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
White Mountains Insurance Group $373.80 million 8.84 $627.20 million ($8.62) -102.53
AXIS Capital $4.59 billion 1.05 -$368.96 million ($3.15) -18.32

White Mountains Insurance Group has higher earnings, but lower revenue than AXIS Capital. White Mountains Insurance Group is trading at a lower price-to-earnings ratio than AXIS Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares White Mountains Insurance Group and AXIS Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
White Mountains Insurance Group 167.81% 0.82% 0.64%
AXIS Capital -6.52% -3.42% -0.69%

Institutional and Insider Ownership

84.6% of White Mountains Insurance Group shares are owned by institutional investors. Comparatively, 89.7% of AXIS Capital shares are owned by institutional investors. 5.1% of White Mountains Insurance Group shares are owned by company insiders. Comparatively, 2.0% of AXIS Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. AXIS Capital pays an annual dividend of $1.56 per share and has a dividend yield of 2.7%. White Mountains Insurance Group pays out -11.6% of its earnings in the form of a dividend. AXIS Capital pays out -49.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AXIS Capital has raised its dividend for 11 consecutive years. AXIS Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for White Mountains Insurance Group and AXIS Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
White Mountains Insurance Group 0 0 0 0 N/A
AXIS Capital 0 7 2 0 2.22

AXIS Capital has a consensus target price of $60.89, indicating a potential upside of 5.53%. Given AXIS Capital’s higher possible upside, analysts plainly believe AXIS Capital is more favorable than White Mountains Insurance Group.

White Mountains Insurance Group Company Profile

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and reinsurance services in the United States. The company operates through HG Global/BAM, MediaAlpha, and Other segments. The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, core governmental functions, and existing transportation facilities. The MediaAlpha segment develops transparent platforms for the buying and selling of insurance and other vertical-specific performance media, such as clicks, calls, and leads; This segment's exchange technology, machine learning, and analytical tools facilitates transparent and real-time transactions between advertisers and publishers. The Other segment provides investment management services; online price comparisons of auto insurance and non-insurance products; management services; and reinsures death and living benefit guarantees associated with variable annuities issued in Japan. White Mountains Insurance Group, Ltd. was founded in 1980 and is headquartered in Hamilton, Bermuda.

AXIS Capital Company Profile

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers property insurance for commercial buildings, residential premises, construction projects, and onshore energy installations; marine insurance covering offshore energy, cargo, liability, recreational marine, fine art, specie, hull, and war; and terrorism, aviation, credit and political risk, and liability insurance. It also provides professional lines insurance that cover directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, and not-for-profit organizations. In addition, this segment offers accidental death, travel, and specialty health products for employer and affinity groups, as well as accident and health reinsurance for catastrophic or per life events through wholesale and retail brokers, managing general agents, and underwriters. The Reinsurance segment offers reinsurance to insurance companies, including catastrophe; property reinsurance covering property damage and related losses resulting from natural and man-made perils; professional lines; and credit and surety. This segment also provides agriculture reinsurance; coverage for various types of construction risks and risks related to erection, testing, and commissioning of machinery and plants during the construction stage; marine, aviation, and personal accident reinsurance; and derivative based risk management products. The company was founded in 2001 and is headquartered in Pembroke, Bermuda.