Assured Guaranty Ltd. (AGO) vs AMERISAFE, Inc. (AMSF)

Assured Guaranty Ltd. and AMERISAFE, Inc. are both Insurance Specialty companies. Assured Guaranty Ltd. is the larger, with a market value of $3.0B against $441.7M — 6.8× the size. Assured Guaranty Ltd. trades at the lower P/E: 9.3× against 9.5×. AMERISAFE, Inc. grew revenue faster over the last twelve months: 9.54% against −10.6%. Assured Guaranty Ltd. has the higher net margin (37.3% vs 14.0%) and the lower return on invested capital (3.91% vs 19.9%). Both pay a dividend; AMERISAFE, Inc. yields more (9.92% vs 1.36%). Across the 23 metrics below, Assured Guaranty Ltd. leads on 12 and AMERISAFE, Inc. on 11.

Valuation

Metric AGO AMSF Insurance Specialty median
P/E 9.27 9.45 9.15
P/S 3.27 1.31 1.84
P/B 0.55 1.76 1.16
Price to free cash flow 9.50 22.74 8.16
EV/EBITDA 10.26 6.29 7.51
EV/Sales 4.76 1.11 2.17
Earnings yield 10.79% 10.58% 10.79%
Free cash flow yield 10.52% 4.40% 11.79%

Profitability

Metric AGO AMSF Insurance Specialty median
Gross margin 99.04% 28.37% 73.81%
Operating margin 46.38% 17.46% 17.70%
Net margin 37.34% 14.00% 13.80%
Free cash flow margin 34.47% 5.75% 34.47%
Return on equity 6.21% 18.23% 12.01%
Return on assets 2.84% 4.12% 4.12%
Return on invested capital 3.91% 19.85% 8.77%

Growth

Metric AGO AMSF Insurance Specialty median
Revenue growth (TTM) (10.56%) 9.54% 7.53%
EPS growth (last fiscal year) 49.34% (14.53%) —
Revenue growth, 5-year CAGR (0.09%) (1.35%) 2.24%
Net income growth, 5-year CAGR 6.80% (11.45%) 0.00%

Health

Metric AGO AMSF Insurance Specialty median
Debt to equity 0.31 0.00 0.15
Current ratio 0.42 0.43 0.53
Net debt to EBITDA 2.24 (1.03) 0.28

Dividend

Metric AGO AMSF Insurance Specialty median
Dividend yield 1.36% 9.92% 2.60%
Payout ratio 0.21 0.38 0.21

Size

Metric AGO AMSF Insurance Specialty median
Market cap 3.01b 441.71m 3.13b

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