Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty insurance underwriter Meadowbrook Insurance Group (NYSE: MIG) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Meadowbrook's business and see what CAPS investors are saying about the stock right now.

Meadowbrook facts

Headquarters (Founded)

Southfield, Mich. (1955)

Market Cap

$535.7 million


Property and casualty insurance

Trailing-12-Month Revenue

$750.07 million


CEO Robert Cubbin (since 2002)

CFO Karen Spaun (since 2003)

Return on Equity (Average, Past 3 Years)



$90.4 million / $118.68 million

Dividend Yield



American Financial Group (NYSE: AFG)

Travelers Companies (NYSE: TRV)

W.R. Berkley (NYSE: WRB)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96.5% of the 171 members who have rated Meadowbrook believe the stock will outperform the S&P 500 going forward. These bulls include All-Star 5SsmallcapDIV and BuffettJunior1.

Earlier this year, 5SsmallcapDIV brought three of Meadowbrook's positives to our community's attention: "5 STAR, Small-cap, dividend payer."

Currently, Meadowbrook even sports a cheapish forward P/E of 8.6. That represents a discount to listed rivals American Financial (9.8), Travelers (9.6), and W.R. Berkley (12.3).

CAPS member BuffettJunior1 elaborates on the bull case:

The fundamentals are excellent. The companies Revenue, Net Income, Operating Cash Flow and Free Cash Flow have all grown at steady rate over the last decade.

The company has a small, manageable amount of debt.

Net margin and ROE have both improved substantially over the last decade.

The company also pays a small dividend, which it can easily sustain and even increase. ...

This company is worth at least twice whats its trading at, and even then it would be cheap.

This is not a very well known company, which is probably the reason its so undervalued. The patient value investor can really profit from this company as it keeps growing and gains more attention.

What do you think about Meadowbrook, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of W.R. Berkley. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.