Comparing Atlas Financial (NASDAQ:AFH) & National General (NASDAQ:NGHC)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Atlas Financial N/A N/A N/A
National General 5.44% 16.90% 3.22%

Earnings and Valuation

This table compares Atlas Financial and National General’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlas Financial $221.77 million 0.04 -$36.89 million N/A N/A
National General $4.61 billion 0.55 $207.35 million $2.09 10.67

National General has higher revenue and earnings than Atlas Financial.

Insider and Institutional Ownership

23.9% of Atlas Financial shares are owned by institutional investors. Comparatively, 52.2% of National General shares are owned by institutional investors. 15.1% of Atlas Financial shares are owned by company insiders. Comparatively, 3.4% of National General shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Atlas Financial has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, National General has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Dividends

National General pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Atlas Financial does not pay a dividend. National General pays out 9.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Atlas Financial and National General, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Financial 0 0 1 0 3.00
National General 0 3 2 0 2.40

National General has a consensus target price of $32.40, suggesting a potential upside of 45.26%. Given National General’s higher possible upside, analysts plainly believe National General is more favorable than Atlas Financial.

Summary

National General beats Atlas Financial on 10 of the 14 factors compared between the two stocks.

About Atlas Financial

Atlas Financial Holdings, Inc., through its subsidiaries, engages in underwriting commercial automobile insurance policies in the United States. Its automobile insurance products provide insurance coverage in three primary areas, including liability, accident benefits, and physical damage. The company focuses on the light commercial automobile sector, including taxi cabs, non-emergency para-transit, limousine, livery, and business autos. The company distributes its insurance products through a network of retail independent agents. Atlas Financial Holdings, Inc. is headquartered in Schaumburg, Illinois.

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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