Critical Comparison: Everest Group (NYSE:EG) versus Greenlight Capital Re (NASDAQ:GLRE)

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

Volatility & Risk

Everest Group has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Greenlight Capital Re has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

92.6% of Everest Group shares are held by institutional investors. Comparatively, 41.5% of Greenlight Capital Re shares are held by institutional investors. 1.2% of Everest Group shares are held by company insiders. Comparatively, 22.8% of Greenlight Capital Re shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Everest Group and Greenlight Capital Re, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everest Group	0	6	3	0	2.33
Greenlight Capital Re	0	0	0	0	0.00

Everest Group presently has a consensus target price of $416.50, indicating a potential upside of 23.44%. Given Everest Group’s stronger consensus rating and higher possible upside, analysts clearly believe Everest Group is more favorable than Greenlight Capital Re.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everest Group	7.95%	9.04%	2.39%
Greenlight Capital Re	12.38%	13.95%	4.68%

Earnings & Valuation

This table compares Everest Group and Greenlight Capital Re”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everest Group	$17.28 billion	0.84	$1.37 billion	$31.41	10.74
Greenlight Capital Re	$667.08 million	0.69	$86.83 million	$2.52	5.25

Everest Group has higher revenue and earnings than Greenlight Capital Re. Greenlight Capital Re is trading at a lower price-to-earnings ratio than Everest Group, indicating that it is currently the more affordable of the two stocks.

Summary

Everest Group beats Greenlight Capital Re on 9 of the 14 factors compared between the two stocks.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.

About Greenlight Capital Re

Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurance company worldwide. The company offers various property reinsurance products and services, including automobile physical damage, personal lines, 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, transactional liability, mortgage insurance, surety, trade credit, marine, and energy, as well as other specialty products, such as aviation, crop, cyber, political, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was incorporated in 2004 and is headquartered in Grand Cayman, the Cayman Islands.