Reviewing Oxbridge Re (NASDAQ:OXBR) and Alleghany (NYSE:Y)

Alleghany (NYSE:YGet Rating) and Oxbridge Re (NASDAQ:OXBRGet Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Institutional and Insider Ownership

84.4% of Alleghany shares are held by institutional investors. Comparatively, 17.7% of Oxbridge Re shares are held by institutional investors. 3.3% of Alleghany shares are held by insiders. Comparatively, 25.6% of Oxbridge Re shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Alleghany and Oxbridge Re’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alleghany 8.62% 6.90% 2.00%
Oxbridge Re 83.77% 70.89% 64.31%

Earnings and Valuation

This table compares Alleghany and Oxbridge Re’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alleghany $12.00 billion 0.93 $1.03 billion $74.53 11.15
Oxbridge Re $10.23 million 2.95 $8.56 million $1.49 3.52

Alleghany has higher revenue and earnings than Oxbridge Re. Oxbridge Re is trading at a lower price-to-earnings ratio than Alleghany, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Alleghany and Oxbridge Re, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alleghany 0 2 1 0 2.33
Oxbridge Re 0 0 0 0 N/A

Alleghany currently has a consensus price target of $843.33, indicating a potential upside of 1.45%. Given Alleghany’s higher probable upside, equities analysts plainly believe Alleghany is more favorable than Oxbridge Re.

Risk and Volatility

Alleghany has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Oxbridge Re has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Summary

Alleghany beats Oxbridge Re on 7 of the 13 factors compared between the two stocks.

About Alleghany (Get Rating)

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company operates in three segments: Reinsurance, Insurance, and Alleghany Capital. The Reinsurance segment offers fire, allied lines, auto physical damage, and homeowners multiple peril reinsurance products; and casualty and other reinsurance products, such as medical malpractice, ocean marine and aviation, accident and health, mortgage, surety, and credit reinsurance products, as well as directors' and officers', errors and omissions, general, and auto liability reinsurance. This segment distributes its products and services through brokers, as well as directly to insurance and reinsurance companies. The Insurance segment underwrites specialty insurance coverages in the property, umbrella/excess, general, directors' and officers', and professional liability lines; surety products comprising commercial and contract surety bonds; and workers' compensation insurance products. This segment distributes its products through independent wholesale insurance brokers, and retail and general insurance agents. The Alleghany Capital segment provides precision automated machine tool solutions; manufactures custom trailers and truck bodies for the moving and storage industry, and other markets; design, engineering, procurement, construction management, and validation services for pharmaceutical and biotechnology industries; products and services for the funeral and cemetery industries, and precast concrete markets; and hotel management and development services, as well as operates as a toy and musical instrument company, and structural steel fabricator and erector. The company also owns and manages improved and unimproved commercial land, and residential lots. As of December 31, 2021, it owned approximately 77 acres of property. The company was founded in 1929 and is based in New York, New York.

About Oxbridge Re (Get Rating)

Oxbridge Re Holdings Limited, together with its subsidiaries, provides specialty property and casualty reinsurance solutions. It underwrites reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States. The company distributes its products and solutions through reinsurance brokers. Oxbridge Re Holdings Limited was incorporated in 2013 and is headquartered in George Town, the Cayman Islands.

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