James River Group (NASDAQ:JRVR – Get Free Report) and Presurance (NASDAQ:PRHI – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Risk and Volatility
James River Group has a beta of -0.21, suggesting that its stock price is 121% less volatile than the S&P 500. Comparatively, Presurance has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Earnings & Valuation
This table compares James River Group and Presurance”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| James River Group | $653.21 million | 0.25 | $47.43 million | $0.38 | 9.29 |
| Presurance | $43.30 million | 0.63 | -$18.44 million | ($10.24) | -0.71 |
James River Group has higher revenue and earnings than Presurance. Presurance is trading at a lower price-to-earnings ratio than James River Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for James River Group and Presurance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| James River Group | 1 | 6 | 0 | 0 | 1.86 |
| Presurance | 1 | 0 | 0 | 0 | 1.00 |
James River Group currently has a consensus target price of $5.75, indicating a potential upside of 62.89%. Presurance has a consensus target price of $7.00, indicating a potential downside of 3.71%. Given James River Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe James River Group is more favorable than Presurance.
Insider & Institutional Ownership
95.2% of James River Group shares are owned by institutional investors. Comparatively, 34.9% of Presurance shares are owned by institutional investors. 34.0% of James River Group shares are owned by insiders. Comparatively, 73.3% of Presurance shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares James River Group and Presurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| James River Group | 4.68% | 9.93% | 1.07% |
| Presurance | -49.56% | -89.12% | -7.90% |
Summary
James River Group beats Presurance on 10 of the 13 factors compared between the two stocks.
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.
About Presurance
Conifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. It offers insurance coverage in specialty commercial and personal product lines. The company underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. It serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. The company also offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of approximately 4,600 independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Birmingham, Michigan.
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