Employers (NYSE:EIG) and Kingstone Companies (NASDAQ:KINS) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.
Earnings & Valuation
This table compares Employers and Kingstone Companies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Employers||$813.50 million||1.76||$141.30 million||$4.11||10.75|
|Kingstone Companies||$113.77 million||1.30||$3.09 million||$0.47||29.23|
This is a summary of current ratings and target prices for Employers and Kingstone Companies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Employers presently has a consensus price target of $47.00, indicating a potential upside of 6.41%. Kingstone Companies has a consensus price target of $17.00, indicating a potential upside of 23.73%. Given Kingstone Companies’ higher probable upside, analysts plainly believe Kingstone Companies is more favorable than Employers.
Risk and Volatility
Employers has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Insider & Institutional Ownership
83.3% of Employers shares are owned by institutional investors. Comparatively, 50.9% of Kingstone Companies shares are owned by institutional investors. 2.8% of Employers shares are owned by insiders. Comparatively, 10.3% of Kingstone Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Employers and Kingstone Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Employers pays an annual dividend of $0.88 per share and has a dividend yield of 2.0%. Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Employers pays out 21.4% of its earnings in the form of a dividend. Kingstone Companies pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Employers has increased its dividend for 3 consecutive years and Kingstone Companies has increased its dividend for 6 consecutive years. Kingstone Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Employers beats Kingstone Companies on 10 of the 15 factors compared between the two stocks.
Employers Company Profile
Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; alternative distribution channels comprising its partners; and through national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Reno, Nevada.
Kingstone Companies Company Profile
Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to small businesses and individuals in New York. The company offers personal lines insurance products, including homeowners and dwelling fire multi-peril, cooperative/condominiums, renters, and personal umbrella policies. It also provides commercial liability policies, such as business owner's policies comprising primarily of small business retail, service, and office risks; artisan's liability policies for small independent contractors; multi-peril policies for larger and specialized risks, and business owner's risks; and commercial umbrella policies. In addition, the company offers for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products. It sells its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.
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