Analyzing Kemper (KMPR) and The Competition

Kemper (NYSE: KMPR) is one of 22 public companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its rivals? We will compare Kemper to similar companies based on the strength of its analyst recommendations, risk, institutional ownership, dividends, valuation, earnings and profitability.

Risk & Volatility

Kemper has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Kemper’s rivals have a beta of 1.28, meaning that their average share price is 28% more volatile than the S&P 500.

Insider & Institutional Ownership

57.7% of Kemper shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 0.9% of Kemper shares are owned by company insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Kemper pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Kemper pays out 43.2% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 50.5% of their earnings in the form of a dividend.

Profitability

This table compares Kemper and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kemper 4.32% 4.47% 1.09%
Kemper Competitors 6.14% 11.23% 2.56%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kemper and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper 0 1 0 1 3.00
Kemper Competitors 112 803 849 21 2.44

Kemper currently has a consensus target price of $55.00, suggesting a potential downside of 19.65%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 2.78%. Given Kemper’s rivals higher probable upside, analysts plainly believe Kemper has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Kemper and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Kemper $2.52 billion $16.80 million 30.83
Kemper Competitors $11.13 billion $534.17 million 163.17

Kemper’s rivals have higher revenue and earnings than Kemper. Kemper is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Kemper rivals beat Kemper on 12 of the 15 factors compared.

About Kemper

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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