ASPEN INS HOLDI/SH (NYSE:AHL) and AmTrust Financial Services (NASDAQ:AFSI) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for ASPEN INS HOLDI/SH and AmTrust Financial Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASPEN INS HOLDI/SH 0 2 0 0 2.00
AmTrust Financial Services 0 1 0 0 2.00

ASPEN INS HOLDI/SH currently has a consensus target price of $42.38, suggesting a potential downside of 0.85%. AmTrust Financial Services has a consensus target price of $14.75, suggesting a potential upside of 0.00%. Given AmTrust Financial Services’ higher possible upside, analysts plainly believe AmTrust Financial Services is more favorable than ASPEN INS HOLDI/SH.

Dividends

ASPEN INS HOLDI/SH pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. AmTrust Financial Services pays an annual dividend of $0.34 per share and has a dividend yield of 2.3%. ASPEN INS HOLDI/SH pays out 7,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ASPEN INS HOLDI/SH has raised its dividend for 7 consecutive years and AmTrust Financial Services has raised its dividend for 12 consecutive years. AmTrust Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

96.8% of ASPEN INS HOLDI/SH shares are owned by institutional investors. Comparatively, 38.0% of AmTrust Financial Services shares are owned by institutional investors. 1.3% of ASPEN INS HOLDI/SH shares are owned by company insiders. Comparatively, 50.8% of AmTrust Financial Services shares are owned by company 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.

Earnings and Valuation

This table compares ASPEN INS HOLDI/SH and AmTrust Financial Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ASPEN INS HOLDI/SH $2.41 billion 1.06 -$145.80 million $0.01 4,274.00
AmTrust Financial Services $5.96 billion 0.49 -$348.88 million N/A N/A

ASPEN INS HOLDI/SH has higher earnings, but lower revenue than AmTrust Financial Services.

Profitability

This table compares ASPEN INS HOLDI/SH and AmTrust Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASPEN INS HOLDI/SH -6.29% 0.99% 0.21%
AmTrust Financial Services 3.98% -17.61% -1.84%

Risk and Volatility

ASPEN INS HOLDI/SH has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, AmTrust Financial Services has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Summary

AmTrust Financial Services beats ASPEN INS HOLDI/SH on 8 of the 14 factors compared between the two stocks.

About ASPEN INS HOLDI/SH

Aspen Insurance Holdings Limited, through its subsidiaries, engages in insurance and reinsurance businesses in the United States and internationally. The company's Aspen Insurance segment offers property and casualty insurance products, including U.S. and U.K. commercial property, commercial liability, U.S. primary casualty, excess casualty, environmental liability, and railroad liability products; and marine, aviation, and energy insurance products, such as marine and energy liability, onshore and offshore energy physical damage, marine hull, specie, inland and ocean marine, and aviation insurance products. This segment also provides financial and professional lines insurance products comprising financial and corporate risks, professional liability, management liability, credit and political risks, crisis management, accident and health, surety risks, and technology liability insurance products. The company's Aspen Reinsurance segment offers property catastrophe reinsurance products; other property reinsurance products; casualty reinsurance products, including U.S. treaty, international treaty, and casualty facultative reinsurance products; and specialty reinsurance products comprising credit and surety, agriculture, marine, aviation, terrorism, engineering, cyber, and other specialty lines. Aspen Insurance Holdings Limited distributes its products primarily through brokers and reinsurance intermediaries. The company was founded in 2002 and is headquartered in Hamilton, Bermuda.

About AmTrust Financial Services

AmTrust Financial Services, Inc. provides property and casualty insurance in the United States and internationally. The company operates in three segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program. The Small Commercial Business segment offers workers' compensation insurance products; and commercial package, and other property and casualty insurance products, such as commercial property, general liability, inland marine, employment practices liability, commercial automobile, and umbrella coverage to small businesses. The Specialty Risk and Extended Warranty segment provides custom designed coverages, such as accidental damage plans, mechanical breakdown protection, and payment protection plans in connection with the sale of consumer and commercial goods; and coverage for niche property, casualty, and specialty liability risks comprising general liability, employers' liability, and professional and medical liability. The Specialty Program segment offers workers' compensation, general liability, commercial auto liability, property coverage, excess and surplus lines programs, and other specialty commercial property and casualty insurance products to small and middle market companies. The company also provides reinsurance services primarily for personal and commercial automotive business. It distributes its policies third-party brokers, agents, retailers, or administrators. AmTrust Financial Services, Inc. was founded in 1998 and is based in New York, New York.

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