National General Holdings Corp (NASDAQ: NGHC) and Kemper Corporation (NYSE:KMPR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Risk & Volatility
National General Holdings Corp has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Kemper Corporation has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
National General Holdings Corp pays an annual dividend of $0.16 per share and has a dividend yield of 0.9%. Kemper Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 2.0%. National General Holdings Corp pays out 22.2% of its earnings in the form of a dividend. Kemper Corporation pays out 98.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares National General Holdings Corp and Kemper Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National General Holdings Corp||2.13%||7.80%||1.61%|
This is a breakdown of recent ratings and recommmendations for National General Holdings Corp and Kemper Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National General Holdings Corp||0||1||2||0||2.67|
National General Holdings Corp currently has a consensus target price of $25.00, indicating a potential upside of 38.97%. Kemper Corporation has a consensus target price of $55.00, indicating a potential upside of 12.13%. Given National General Holdings Corp’s higher possible upside, analysts plainly believe National General Holdings Corp is more favorable than Kemper Corporation.
Earnings and Valuation
This table compares National General Holdings Corp and Kemper Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|National General Holdings Corp||$4.15 billion||0.46||$249.48 million||$0.72||24.99|
|Kemper Corporation||$2.62 billion||0.96||$169.90 million||$0.98||50.05|
National General Holdings Corp has higher revenue and earnings than Kemper Corporation. National General Holdings Corp is trading at a lower price-to-earnings ratio than Kemper Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
53.2% of National General Holdings Corp shares are held by institutional investors. Comparatively, 55.0% of Kemper Corporation shares are held by institutional investors. 3.4% of National General Holdings Corp shares are held by company insiders. Comparatively, 0.9% of Kemper Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
National General Holdings Corp beats Kemper Corporation on 10 of the 16 factors compared between the two stocks.
About National General Holdings Corp
National General Holdings Corp. is a specialty personal lines insurance holding company. Through its subsidiaries, the Company provides a range of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche products. It operates through two segments: Property and Casualty (P&C) and Accident and Health (A&H). Its P&C segment offers its P&C insurance products through a network of agents, a number of affinity partners and through direct-response marketing programs. Its A&H segment provides accident and non-major medical health insurance products targeting its existing P&C policyholders and the anticipated market of employed persons who are uninsured or underinsured. The P&C segment operates its business through three distribution channels: agency, affinity and direct. The A&H segment provides supplemental accident and health insurance products.
About Kemper Corporation
Kemper Corporation (Kemper) is a diversified insurance holding company. The Company, through its subsidiaries, provides automobile, homeowners, life, health and other insurance products to individuals and businesses. The Company operates through two segments: Property & Casualty Insurance, and Life & Health Insurance. The Property & Casualty Insurance segment’s products include personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.
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