Assurant (NYSE:AIZ – Get Free Report) and James River Group (NASDAQ:JRVR – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Profitability
This table compares Assurant and James River Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Assurant | 7.90% | 20.40% | 3.34% |
| James River Group | 4.68% | 9.93% | 1.07% |
Volatility & Risk
Assurant has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, James River Group has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500.
Earnings and Valuation
This table compares Assurant and James River Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Assurant | $13.46 billion | 1.03 | $872.70 million | $20.94 | 13.44 |
| James River Group | $687.61 million | 0.25 | $47.43 million | $0.38 | 9.76 |
Assurant has higher revenue and earnings than James River Group. James River Group is trading at a lower price-to-earnings ratio than Assurant, indicating that it is currently the more affordable of the two stocks.
Dividends
Assurant pays an annual dividend of $3.52 per share and has a dividend yield of 1.3%. James River Group pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Assurant pays out 16.8% of its earnings in the form of a dividend. James River Group pays out 10.5% 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. Assurant has increased its dividend for 21 consecutive years. Assurant is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
92.7% of Assurant shares are held by institutional investors. Comparatively, 95.2% of James River Group shares are held by institutional investors. 0.5% of Assurant shares are held by company insiders. Comparatively, 34.0% of James River Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Assurant and James River Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Assurant | 0 | 0 | 6 | 2 | 3.25 |
| James River Group | 1 | 6 | 0 | 0 | 1.86 |
Assurant presently has a consensus target price of $324.29, indicating a potential upside of 15.23%. James River Group has a consensus target price of $5.75, indicating a potential upside of 54.99%. Given James River Group’s higher probable upside, analysts clearly believe James River Group is more favorable than Assurant.
Summary
Assurant beats James River Group on 14 of the 18 factors compared between the two stocks.
About Assurant
Assurant, Inc., together with its subsidiaries, provides business services that supports, protects, and connects consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products; and vehicle protection, commercial equipment, and other related services. The Global Housing segment provides lender-placed homeowners, manufactured housing, and flood insurance; renters insurance and related products; and voluntary manufactured housing, and condominium and homeowners insurance products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in Atlanta, Georgia.
About James River Group
James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance services. It operates through Excess and Surplus Lines, and Specialty Admitted Insurance segments. The Excess and Surplus Lines segment underwrites liability and property insurance in the United States Puerto Rice, and the United States Virgin Islands. This segment distributes its insurance policies primarily through wholesale insurance brokers. The Specialty Admitted Insurance segment provides insurance for fronting, program administrators, managing general agents, and independent retail agents. James River Group Holdings, Ltd. was founded in 2002 and is headquartered in Pembroke, Bermuda.
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