Critical Analysis: RenaissanceRe (NYSE:RNR) and Amacore Group (OTCMKTS:ACGI)

RenaissanceRe (NYSE:RNR) and Amacore Group (OTCMKTS:ACGI) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Risk and Volatility

RenaissanceRe has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Amacore Group has a beta of 3.35, suggesting that its stock price is 235% more volatile than the S&P 500.

Profitability

This table compares RenaissanceRe and Amacore Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RenaissanceRe	23.65%	23.10%	4.62%
Amacore Group	N/A	N/A	N/A

Earnings & Valuation

This table compares RenaissanceRe and Amacore Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RenaissanceRe	$11.06 billion	1.21	$2.68 billion	$58.27	5.52
Amacore Group	N/A	N/A	N/A	N/A	N/A

RenaissanceRe has higher revenue and earnings than Amacore Group.

Analyst Recommendations

This is a breakdown of current ratings and price targets for RenaissanceRe and Amacore Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RenaissanceRe	1	11	5	0	2.24
Amacore Group	0	0	0	0	0.00

RenaissanceRe presently has a consensus price target of $336.33, indicating a potential upside of 4.47%. Given RenaissanceRe’s stronger consensus rating and higher probable upside, analysts clearly believe RenaissanceRe is more favorable than Amacore Group.

Institutional and Insider Ownership

100.0% of RenaissanceRe shares are owned by institutional investors. 2.3% of RenaissanceRe shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

RenaissanceRe beats Amacore Group on 9 of the 10 factors compared between the two stocks.

About RenaissanceRe

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes products and services primarily through intermediaries. The company invests in and manages funds. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

About Amacore Group

The Amacore Group, Inc. provides and markets healthcare-related membership products for individuals and families. Its products include limited and major medical insurance programs, supplemental medical insurance, and discount dental and vision programs. The company also provides and markets lifestyle membership programs, including insurance discounts, discount benefit savings, ID theft, legal counsel, credit management, automotive warranties, employment protection, and a host of others. The company serves insurance carriers, financial institutions, affiliate marketers, direct marketers, insurance agents, and fortune 500 companies. It distributes its products and services through various distribution methods, such as its agent network, inbound call center, in-house sales representatives, network marketing, and affinity marketing partners, as well as through third-party direct response marketers. The Amacore Group, Inc. was formerly known as Eye Care International Inc. and changed its name to The Amacore Group, Inc. in April 2005. The company was founded in 1993 and is based in Maitland, Florida.