Contrasting Leucadia National (LUK) and Global Indemnity (GBLI)

Global Indemnity (NASDAQ: GBLI) and Leucadia National (NYSE:LUK) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Dividends

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Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Leucadia National pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Leucadia National pays out 24.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Global Indemnity and Leucadia National’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Indemnity $485.52 million 1.07 -$9.55 million N/A N/A
Leucadia National $11.44 billion 0.69 $171.72 million $1.65 13.39

Leucadia National has higher revenue and earnings than Global Indemnity.

Institutional & Insider Ownership

56.4% of Global Indemnity shares are owned by institutional investors. Comparatively, 75.4% of Leucadia National shares are owned by institutional investors. 53.3% of Global Indemnity shares are owned by insiders. Comparatively, 10.2% of Leucadia National shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Global Indemnity and Leucadia National, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Indemnity 0 0 0 0 N/A
Leucadia National 0 0 0 0 N/A

Profitability

This table compares Global Indemnity and Leucadia National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Indemnity -1.97% 0.90% 0.35%
Leucadia National 1.81% 6.25% 1.39%

Volatility & Risk

Global Indemnity has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Leucadia National has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Summary

Leucadia National beats Global Indemnity on 7 of the 12 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.

Leucadia National Company Profile

Leucadia National Corporation (Leucadia) is a diversified holding company focused on return on investment and long-term value. The Company’s segments, based on requirements are Jefferies, National Beef, and Corporate and other. Jefferies is a global full-service, integrated securities and investment banking firm. National Beef processes and markets fresh boxed beef, case-ready beef, beef by-products and wet blue leather for domestic and international markets. Its financial services businesses include Jefferies Group LLC, Leucadia Asset Management, Berkadia Commercial Mortgage, LLC (commercial mortgage banking and servicing), FXCM Group, LLC, HomeFed Corporation (HomeFed) and Foursight Capital and Chrome Capital (vehicle finance). It also owns and has investments in an array of businesses, including National Beef, HRG Group, Inc. (HRG), Vitesse Energy, LLC and Juneau Energy, LLC, Conwed Plastics and Idaho Timber and Golden Queen Mining Company, LLC (a gold and silver mining project).

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