Financial Comparison: Lancashire (LCSHF) vs. Its Competitors

Lancashire (OTCMKTS:LCSHF) is one of 316 publicly-traded companies in the “Insurance” industry, but how does it contrast to its peers? We will compare Lancashire to similar companies based on the strength of its earnings, valuation, institutional ownership, risk, analyst recommendations, profitability and dividends.

Earnings and Valuation

This table compares Lancashire and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lancashire	N/A	N/A	7.75
Lancashire Competitors	$15.65 billion	$1.69 billion	33.87

Lancashire’s peers have higher revenue and earnings than Lancashire. Lancashire is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Lancashire pays an annual dividend of $0.15 per share and has a dividend yield of 1.9%. Lancashire pays out 14.6% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 3.0% and pay out 29.8% of their earnings in the form of a dividend.

Institutional and Insider Ownership

63.3% of Lancashire shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Insurance” companies are owned by institutional investors. 13.9% of shares of all “Insurance” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Lancashire and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lancashire	1	0	0	0	1.00
Lancashire Competitors	3210	15290	16101	677	2.40

As a group, “Insurance” companies have a potential upside of 8.50%. Given Lancashire’s peers stronger consensus rating and higher possible upside, analysts plainly believe Lancashire has less favorable growth aspects than its peers.

Profitability

This table compares Lancashire and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lancashire	N/A	N/A	N/A
Lancashire Competitors	10.30%	11.09%	4.14%

Summary

Lancashire peers beat Lancashire on 11 of the 13 factors compared.

Lancashire Company Profile

Lancashire Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products in London, Bermuda, Australia, and the United States. The company operates through two segments, Reinsurance and Insurance. It offers property direct and facultative, property political risk and sovereign risk, and property terrorism and political violence insurance products; and aviation AV52, aviation consortium, airline hull and liability, and satellite insurance products. The company also provides Marine Builders Risk, marine hull, total loss and war, mortgagees interests insurance, mortgagees additional perils, excess protection and indemnity, marine war, and builder’s risks; and energy insurance products covering upstream operational, downstream and onshore operational, and upstream construction all risks business. In addition, it offers property reinsurance, specialty and casualty reinsurance, and marine reinsurance; accident and health insurance, as well as consortia arrangements within Lloyd; and general insurance, support, insurance agency, line brokerage, Lloyd’s managing agency and service, and insurance mediation services. Lancashire Holdings Limited was incorporated in 2005 and is headquartered in Hamilton, Bermuda.