Contrasting AXIS Capital (NYSE:AXS) & Everest Group (NYSE:EG)

AXIS Capital (NYSE:AXS) and Everest Group (NYSE:EG) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Earnings and Valuation

This table compares AXIS Capital and Everest Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AXIS Capital	$5.96 billion	1.28	$1.08 billion	$12.35	7.39
Everest Group	$17.28 billion	0.83	$1.37 billion	$31.41	10.68

Everest Group has higher revenue and earnings than AXIS Capital. AXIS Capital is trading at a lower price-to-earnings ratio than Everest Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for AXIS Capital and Everest Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AXIS Capital	0	3	6	0	2.67
Everest Group	0	6	3	0	2.33

AXIS Capital currently has a consensus price target of $99.88, suggesting a potential upside of 9.44%. Everest Group has a consensus price target of $416.50, suggesting a potential upside of 24.13%. Given Everest Group’s higher possible upside, analysts clearly believe Everest Group is more favorable than AXIS Capital.

Dividends

AXIS Capital pays an annual dividend of $1.76 per share and has a dividend yield of 1.9%. Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.4%. AXIS Capital pays out 14.3% of its earnings in the form of a dividend. Everest Group pays out 25.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

AXIS Capital has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Everest Group has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Profitability

This table compares AXIS Capital and Everest Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AXIS Capital	18.16%	18.89%	3.05%
Everest Group	7.95%	9.04%	2.39%

Insider and Institutional Ownership

93.4% of AXIS Capital shares are held by institutional investors. Comparatively, 92.6% of Everest Group shares are held by institutional investors. 0.5% of AXIS Capital shares are held by company insiders. Comparatively, 1.2% of Everest Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

AXIS Capital beats Everest Group on 9 of the 16 factors compared between the two stocks.

About AXIS Capital

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.