Cna Financial (NYSE:CNA) and Kemper (NYSE:KMPR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.
Risk and Volatility
Cna Financial has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Kemper has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Earnings and Valuation
This table compares Cna Financial and Kemper’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cna Financial||$10.13 billion||1.29||$813.00 million||$3.10||15.51|
|Kemper||$3.73 billion||1.37||$190.10 million||$4.37||17.48|
Cna Financial has higher revenue and earnings than Kemper. Cna Financial is trading at a lower price-to-earnings ratio than Kemper, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Cna Financial and Kemper, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kemper has a consensus price target of $83.00, indicating a potential upside of 8.68%. Given Kemper’s higher probable upside, analysts plainly believe Kemper is more favorable than Cna Financial.
Cna Financial pays an annual dividend of $1.40 per share and has a dividend yield of 2.9%. Kemper pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Cna Financial pays out 45.2% of its earnings in the form of a dividend. Kemper pays out 22.9% 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. Cna Financial has increased its dividend for 2 consecutive years. Cna Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
99.2% of Cna Financial shares are owned by institutional investors. Comparatively, 69.3% of Kemper shares are owned by institutional investors. 0.2% of Cna Financial shares are owned by insiders. Comparatively, 1.4% of Kemper shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Cna Financial and Kemper’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kemper beats Cna Financial on 10 of the 16 factors compared between the two stocks.
Cna Financial Company Profile
CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. The company also provides property insurance products, such as property, marine, boiler, and machinery coverages; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, and umbrella coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term policies. In addition, it offers long-tail exposures comprising commercial automobile liability, workers compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures comprising property, commercial automobile physical damage, marine, surety, and warranty. The company markets its products through independent agents, brokers, and general underwriters to customers small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries. The company was founded in 1853 and is headquartered in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.
Kemper Company Profile
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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