Kingstone Companies (NASDAQ:KINS) & National General (NASDAQ:NGHC) Head to Head Survey

Kingstone Companies (NASDAQ:KINS) and National General (NASDAQ:NGHC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Earnings & Valuation

This table compares Kingstone Companies and National General’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kingstone Companies $113.77 million 0.76 $3.09 million $0.47 17.13
National General $4.61 billion 0.59 $207.35 million $2.09 11.44

National General has higher revenue and earnings than Kingstone Companies. National General is trading at a lower price-to-earnings ratio than Kingstone Companies, indicating that it is currently the more affordable of the two stocks.

Dividends

Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 5.0%. National General pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. 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. National General pays out 7.7% of its earnings in the form of a dividend. Kingstone Companies has raised 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kingstone Companies and National General, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kingstone Companies 0 0 1 0 3.00
National General 0 3 2 0 2.40

Kingstone Companies currently has a consensus price target of $13.00, suggesting a potential upside of 61.49%. National General has a consensus price target of $32.40, suggesting a potential upside of 35.56%. Given Kingstone Companies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Kingstone Companies is more favorable than National General.

Volatility and Risk

Kingstone Companies has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, National General has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Institutional and Insider Ownership

47.7% of Kingstone Companies shares are held by institutional investors. Comparatively, 51.5% of National General shares are held by institutional investors. 8.9% of Kingstone Companies shares are held by insiders. Comparatively, 3.4% of National General shares are held by 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.

Profitability

This table compares Kingstone Companies and National General’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kingstone Companies -2.03% -3.77% -1.21%
National General 5.44% 16.90% 3.22%

Summary

National General beats Kingstone Companies on 10 of the 17 factors compared between the two stocks.

About Kingstone Companies

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.

About National General

National General Holdings Corp., a specialty personal lines insurance holding company, provides various insurance products and services in the United States, Bermuda, Luxembourg, and Sweden. The company's Property and Casualty segment offers standard, preferred, and nonstandard automobile insurance products; and recreational vehicle (RV) insurance products that carry RV-specific endorsements comprising automatic personal effects coverage, optional replacement cost coverage, RV storage coverage, and full-time liability coverage. It also provides homeowners policies consisting of property and liability coverages for one-and two-family, and owner-occupied residences; and additional personal umbrella coverage to the homeowners. In addition, this segment offers small business automobile insurance products, which covers liability and physical damage caused by light-to-medium duty commercial vehicles; motorcycle insurance products for various types of motorcycles, golf carts, and all-terrain vehicles; and lender-placed insurance products, including fire, home, and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles. It sells its products through retail store fronts, Web/mobile, phone contact centers, and kiosks; and agents and affinity partners. The company's Accident and Health segment provides accident and non-major medical health insurance products, such as accident/AD&D coverage in the event of bodily injury or death due to accidental means; hospital indemnity; short-term medical plans; cancer/critical illness policies; basic dental coverage; and life insurance products for individuals, as well as stop loss programs for employers. It sells its products through agents, managing general underwriters, employers, Internet; and directly. The company was formerly known as American Capital Acquisition Corporation. National General Holdings Corp. was founded in 1939 and is headquartered in New York, New York.

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