AMERISAFE (AMSF) versus Aviva Plc (AV) Financial Analysis

AMERISAFE (NASDAQ: AMSF) and Aviva Plc (NYSE:AV) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

99.7% of AMERISAFE shares are owned by institutional investors. Comparatively, 0.8% of Aviva Plc shares are owned by institutional investors. 2.2% of AMERISAFE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AMERISAFE and Aviva Plc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMERISAFE 17.13% 14.05% 4.33%
Aviva Plc N/A N/A N/A

Dividends

AMERISAFE pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Aviva Plc pays an annual dividend of $0.55 per share and has a dividend yield of 4.7%. AMERISAFE pays out 22.9% of its earnings in the form of a dividend. Aviva Plc has raised its dividend for 3 consecutive years. Aviva Plc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares AMERISAFE and Aviva Plc’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AMERISAFE $391.87 million 2.70 $98.32 million $3.49 15.85
Aviva Plc N/A N/A N/A N/A N/A

AMERISAFE has higher revenue and earnings than Aviva Plc.

Risk and Volatility

AMERISAFE has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Aviva Plc has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for AMERISAFE and Aviva Plc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMERISAFE 0 0 1 0 3.00
Aviva Plc 1 4 2 0 2.14

AMERISAFE currently has a consensus price target of $64.00, suggesting a potential upside of 15.73%. Given AMERISAFE’s stronger consensus rating and higher probable upside, analysts clearly believe AMERISAFE is more favorable than Aviva Plc.

Summary

AMERISAFE beats Aviva Plc on 8 of the 13 factors compared between the two stocks.

About AMERISAFE

Amerisafe, Inc. is an insurance holding company. The Company is engaged in providing workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, and agriculture. It is engaged in underwriting the workers’ compensation exposures inherent in these industries. It provides coverage to employers under state and federal workers’ compensation laws. The Company’s workers’ compensation insurance policies provide benefits to injured employees for, temporary or permanent disability, death and medical and hospital expenses. The Company provides safety services at employers’ workplaces as a component of its underwriting process. It utilizes claims management practices. In addition to its voluntary workers’ compensation business, it underwrites workers’ compensation policies for employers assigned to the Company and assumes reinsurance premiums from mandatory pooling arrangements.

About Aviva Plc

Aviva plc is a holding company. The Company provides customers with long-term insurance and savings, general and health insurance, and fund management products and services. Its segments include United Kingdom & Ireland; France; Poland; Italy, Spain and Other; Canada; Asia; Aviva Investors, and Other Group activities. The United Kingdom and Ireland segment consists of two operating segments: Life and General Insurance. The principal activities of its French operations are long-term business and general insurance. Its Poland Activities in Poland consist of long-term business and general insurance operations. Its Italian operations are long-term business and general insurance. The principal activity of the Canadian operation is general insurance. Its activities in Asia consist of its long-term business operations in China, India, Singapore, Hong Kong, Vietnam, Indonesia, Taiwan and international operations. The Aviva Investors segment offers a range of asset management services.

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