Lancashire (OTCMKTS:LCSHF – Get Free Report) and MBIA (NYSE:MBI – Get Free Report) are both financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Insider & Institutional Ownership
63.3% of Lancashire shares are held by institutional investors. Comparatively, 57.5% of MBIA shares are held by institutional investors. 12.9% of MBIA shares are held 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.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Lancashire and MBIA, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lancashire | 1 | 0 | 1 | 0 | 2.00 |
| MBIA | 0 | 0 | 3 | 0 | 3.00 |
Earnings and Valuation
This table compares Lancashire and MBIA’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lancashire | N/A | N/A | N/A | $1.03 | 7.83 |
| MBIA | $154.00 million | 3.06 | -$203.00 million | ($4.30) | -2.00 |
Lancashire has higher earnings, but lower revenue than MBIA. MBIA is trading at a lower price-to-earnings ratio than Lancashire, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lancashire and MBIA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lancashire | N/A | N/A | N/A |
| MBIA | -185.35% | N/A | -1.35% |
Summary
Lancashire beats MBIA on 6 of the 10 factors compared between the two stocks.
About Lancashire
Lancashire Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products in London, Bermuda, and Australia. The company operates through five segments: Property and Casualty Reinsurance, Property and Casualty Insurance, Aviation, Energy, and Marine. It offers property direct and facultative, property political risk and sovereign risk, and property terrorism and political violence insurance products, as well as property reinsurance services; and aviation AV52, aviation consortium, airline hull and liability, and satellite insurance products. The company also provides marine hull, total loss only, mortgagees interests insurance, mortgagees additional perils, excess protection and indemnity, marine war, and builder's risks; and energy insurance products covering upstream, downstream and onshore operational, and upstream construction all risks business. In addition, it offers general insurance, support, insurance agent, and insurance mediation services. Lancashire Holdings Limited was incorporated in 2005 and is headquartered in Hamilton, Bermuda.
About MBIA
MBIA Inc. provides financial guarantee insurance services to public finance markets. It operates through United States (U.S.) Public Finance Insurance, Corporate, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions and territories, as well as utilities, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, utilities, and privately issued bonds used for the financing of projects that include toll roads, bridges, airports, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.
Receive News & Ratings for Lancashire Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lancashire and related companies with MarketBeat.com's FREE daily email newsletter.
