Head to Head Comparison: Protective Insurance (NASDAQ:PTVCA) & Kemper (NASDAQ:KMPR)

Protective Insurance (NASDAQ:PTVCA) and Kemper (NYSE:KMPR) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Earnings & Valuation

This table compares Protective Insurance and Kemper’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Protective Insurance $439.17 million 0.55 -$34.08 million N/A N/A
Kemper $3.73 billion 1.54 $190.10 million $4.37 19.74

Kemper has higher revenue and earnings than Protective Insurance.

Volatility and Risk

Protective Insurance has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Kemper has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Dividends

Protective Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Kemper pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Kemper pays out 22.9% of its earnings in the form of a dividend.

Profitability

This table compares Protective Insurance and Kemper’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Protective Insurance -6.98% -5.19% -1.34%
Kemper 6.83% 10.47% 2.71%

Analyst Recommendations

This is a breakdown of recent ratings for Protective Insurance and Kemper, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Protective Insurance 0 0 0 0 N/A
Kemper 0 1 2 0 2.67

Kemper has a consensus target price of $81.00, indicating a potential downside of 6.10%. Given Kemper’s higher possible upside, analysts clearly believe Kemper is more favorable than Protective Insurance.

Institutional and Insider Ownership

3.8% of Protective Insurance shares are held by institutional investors. Comparatively, 65.8% of Kemper shares are held by institutional investors. 28.2% of Protective Insurance shares are held by insiders. Comparatively, 1.4% of Kemper shares are held 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.

Summary

Kemper beats Protective Insurance on 10 of the 13 factors compared between the two stocks.

About Protective Insurance

Protective Insurance Corporation, through its subsidiaries, engages in marketing and underwriting property and casualty insurance products. The company offers a range of fleet transportation insurance products, including commercial motor vehicle liability, physical damage, and general liability insurance; workers compensation insurance; medical and indemnity insurance products; non-trucking motor vehicle liability insurance; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It also provides various additional services, such as risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. It serves trucking and public transportation fleets, as well as independent contractors in the trucking industry. The company primarily operates in the United States, Canada, Bermuda, and Puerto Rico. Protective Insurance Corporation was founded in 1930 and is headquartered in Carmel, Indiana.

About Kemper

Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States. It operates through three segments: Preferred Property & Casualty Insurance, Specialty Property & Casualty Insurance, and Life and Health Insurance. The company provides automobile, homeowners, renters, fire, umbrella, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses. The company distributes its products through independent agents and brokers. The company also offers life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; Medicare supplement insurance; and limited health insurance coverages, such as fixed indemnity, specified disease, and accident-only plans to individuals in rural areas. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was founded in 1990 and is headquartered in Chicago, Illinois.

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