Assured Guaranty Ltd. (AGO) vs Employers Holdings Inc (EIG)

Assured Guaranty Ltd. and Employers Holdings Inc are both Insurance Specialty companies. Assured Guaranty Ltd. is the larger, with a market value of $3.0B against $854.4M — 3.5× the size. Assured Guaranty Ltd. trades at the lower P/E: 9.3× against 67.6×. Employers Holdings Inc grew revenue faster over the last twelve months: −5.83% against −10.6%. Assured Guaranty Ltd. has the higher net margin (37.3% vs 0.91%) and the higher return on invested capital (3.91% vs 0.55%). Both pay a dividend; Employers Holdings Inc yields more (2.69% vs 1.36%). Across the 23 metrics below, Assured Guaranty Ltd. leads on 16 and Employers Holdings Inc on 7.

Valuation

Metric AGO EIG Insurance Specialty median
P/E 9.27 67.57 9.15
P/S 3.27 1.03 1.84
P/B 0.55 1.00 1.16
Price to free cash flow 9.50 43.65 8.16
EV/EBITDA 10.26 47.71 7.51
EV/Sales 4.76 1.06 2.17
Earnings yield 10.79% 1.48% 10.79%
Free cash flow yield 10.52% 2.29% 11.79%

Profitability

Metric AGO EIG Insurance Specialty median
Gross margin 99.04% 1.25% 73.81%
Operating margin 46.38% 1.25% 17.70%
Net margin 37.34% 0.91% 13.80%
Free cash flow margin 34.47% 2.35% 34.47%
Return on equity 6.21% 0.78% 12.01%
Return on assets 2.84% 0.22% 4.12%
Return on invested capital 3.91% 0.55% 8.77%

Growth

Metric AGO EIG Insurance Specialty median
Revenue growth (TTM) (10.56%) (5.83%) 7.53%
EPS growth (last fiscal year) 49.34% (90.23%) —
Revenue growth, 5-year CAGR (0.09%) 3.84% 2.24%
Net income growth, 5-year CAGR 6.80% (38.20%) 0.00%

Health

Metric AGO EIG Insurance Specialty median
Debt to equity 0.31 0.15 0.15
Current ratio 0.42 0.37 0.53
Net debt to EBITDA 2.24 (5.61) 0.28

Dividend

Metric AGO EIG Insurance Specialty median
Dividend yield 1.36% 2.69% 2.60%
Payout ratio 0.21 0.23 0.21

Size

Metric AGO EIG Insurance Specialty median
Market cap 3.01b 854.38m 3.13b

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