EMC Insurance Group (NASDAQ: EMCI) and Meadowbrook Insurance Group (NYSE:MIG) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
This table compares EMC Insurance Group and Meadowbrook Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EMC Insurance Group||5.87%||5.66%||1.98%|
|Meadowbrook Insurance Group||4.54%||7.19%||1.16%|
Institutional and Insider Ownership
28.2% of EMC Insurance Group shares are held by institutional investors. 4.5% of EMC Insurance Group shares are held by company 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.
Valuation and Earnings
This table compares EMC Insurance Group and Meadowbrook Insurance Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EMC Insurance Group||$649.90 million||0.95||$38.22 million||$1.79||16.22|
|Meadowbrook Insurance Group||N/A||N/A||N/A||N/A||N/A|
EMC Insurance Group has higher revenue and earnings than Meadowbrook Insurance Group.
This is a breakdown of current ratings for EMC Insurance Group and Meadowbrook Insurance Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EMC Insurance Group||0||1||0||0||2.00|
|Meadowbrook Insurance Group||0||0||0||0||N/A|
EMC Insurance Group presently has a consensus price target of $30.00, indicating a potential upside of 3.34%. Given EMC Insurance Group’s higher probable upside, equities research analysts plainly believe EMC Insurance Group is more favorable than Meadowbrook Insurance Group.
EMC Insurance Group pays an annual dividend of $0.84 per share and has a dividend yield of 2.9%. Meadowbrook Insurance Group does not pay a dividend. EMC Insurance Group pays out 46.9% of its earnings in the form of a dividend.
EMC Insurance Group beats Meadowbrook Insurance Group on 7 of the 9 factors compared between the two stocks.
EMC Insurance Group Company Profile
EMC Insurance Group Inc. is an insurance holding company. The Company operates through two segments: Property and Casualty Insurance and Reinsurance segment. It conducts its property and casualty insurance operations through its subsidiaries, including EMCASCO Insurance Company, Illinois EMCASCO Insurance Company and Dakota Fire Insurance Company, and its reinsurance operations through its subsidiary, EMC Reinsurance Company. The Company focuses on the sale of commercial lines of property and casualty insurance to small and medium-sized businesses. The Company offered its insurance products in 41 states, as of December 31, 2016. The Company is owned by Employers Mutual Casualty Company (Employers Mutual), a multiple-line property and casualty insurance company. The Company’s insurance agency, EMC Underwriters, LLC (EMC Underwriters), specializes in marketing excess and surplus lines of insurance.
Meadowbrook Insurance Group Company Profile
Meadowbrook Insurance Group, Inc. (Meadowbrook) is a holding company. The Company is a commercial insurance underwriter and insurance administration services company. The Company markets and underwrites specialty property and casualty insurance programs and products through a network of independent retail agents, wholesalers, program administrators and general agents. The Company’s products include Admitted Programs and Standard Market Products, Main Street Excess and Surplus Lines, Non-Admitted Programs, and Specialty Market Products. The Company is also involved in a range of activities, including program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control and reinsurance. The Company also provides the following services to its fee-for-service and agency clients: administration of risk-bearing entities and agency services.
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