Kingstone Companies (NASDAQ:KINS) and Selective Insurance Group (NASDAQ:SIGI) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Valuation and Earnings
This table compares Kingstone Companies and Selective Insurance Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kingstone Companies||$92.77 million||1.85||$9.98 million||$0.94||17.02|
|Selective Insurance Group||$2.59 billion||1.45||$178.93 million||$3.66||17.39|
Selective Insurance Group has higher revenue and earnings than Kingstone Companies. Kingstone Companies is trading at a lower price-to-earnings ratio than Selective Insurance Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Kingstone Companies has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Selective Insurance Group has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
This table compares Kingstone Companies and Selective Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Selective Insurance Group||6.92%||12.69%||2.79%|
This is a breakdown of current recommendations and price targets for Kingstone Companies and Selective Insurance Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Selective Insurance Group||1||4||0||0||1.80|
Kingstone Companies currently has a consensus target price of $20.00, indicating a potential upside of 25.00%. Selective Insurance Group has a consensus target price of $61.33, indicating a potential downside of 3.64%. Given Kingstone Companies’ stronger consensus rating and higher possible upside, research analysts plainly believe Kingstone Companies is more favorable than Selective Insurance Group.
Insider & Institutional Ownership
51.0% of Kingstone Companies shares are owned by institutional investors. Comparatively, 79.2% of Selective Insurance Group shares are owned by institutional investors. 10.3% of Kingstone Companies shares are owned by company insiders. Comparatively, 2.0% of Selective Insurance Group shares are owned by company 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.
Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Selective Insurance Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Kingstone Companies pays out 42.6% of its earnings in the form of a dividend. Selective Insurance Group pays out 21.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kingstone Companies has increased its dividend for 6 consecutive years and Selective Insurance Group has increased its dividend for 5 consecutive years. Kingstone Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Selective Insurance Group beats Kingstone Companies on 10 of the 17 factors compared between the two stocks.
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 provides personal lines insurance products, such as homeowners and dwelling fire multi-peril, cooperative/condominium, renter, and personal umbrella policies. It also offers commercial liability policies comprising business owners policies, such as small business retail, service, and office risks without residential exposure to business owners; artisan's liability policies for small independent contractors; special multi-peril policies for business owners risks; and commercial umbrella policies. In addition, the company provides 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. Kingstone Companies, Inc. sells its products through independent 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 based in Kingston, New York.
Selective Insurance Group Company Profile
Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. It operates in four segments: Standard Commercial Lines, Standard Personal Lines, Excess and Surplus (E&S) Lines, and Investments. The company's products and services include property insurance, which covers the financial consequences of accidental loss of an insured's real and/or personal property; and casualty insurance that covers the financial consequences of employee injuries in the course of employment, and bodily injury and/or property damage to a third party as a result of an insured's negligent acts, omissions, or legal liabilities. Its products and services also comprise flood insurance. The company offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail insurance agents and brokers, and wholesale general agents. In addition, it invests in the premiums collected by Standard Commercial Lines, Standard Personal Lines, and E&S Lines segments on fixed income investments and preferred stocks, equity securities, and alternative investment portfolio. Selective Insurance Group, Inc. was founded in 1925 and is headquartered in Branchville, New Jersey.
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