Kemper (KMPR) vs. Third Point Reinsurance (TPRE) Financial Analysis

Kemper (NYSE:KMPR) and Third Point Reinsurance (NYSE:TPRE) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Valuation and Earnings

This table compares Kemper and Third Point Reinsurance’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kemper $2.72 billion 1.69 $120.90 million $1.64 43.33
Third Point Reinsurance $939.01 million 1.01 $277.79 million $2.63 3.84

Third Point Reinsurance has lower revenue, but higher earnings than Kemper. Third Point Reinsurance is trading at a lower price-to-earnings ratio than Kemper, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kemper and Third Point Reinsurance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper 0 1 3 0 2.75
Third Point Reinsurance 0 1 2 0 2.67

Kemper currently has a consensus price target of $80.00, suggesting a potential upside of 12.58%. Third Point Reinsurance has a consensus price target of $15.00, suggesting a potential upside of 48.51%. Given Third Point Reinsurance’s higher possible upside, analysts plainly believe Third Point Reinsurance is more favorable than Kemper.

Institutional & Insider Ownership

65.4% of Kemper shares are held by institutional investors. Comparatively, 71.8% of Third Point Reinsurance shares are held by institutional investors. 0.9% of Kemper shares are held by company insiders. Comparatively, 12.1% of Third Point Reinsurance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Kemper has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Third Point Reinsurance has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Profitability

This table compares Kemper and Third Point Reinsurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kemper 6.63% 9.56% 2.38%
Third Point Reinsurance 3.89% 1.50% 0.54%

Dividends

Kemper pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Third Point Reinsurance does not pay a dividend. Kemper pays out 58.5% of its earnings in the form of a dividend.

Summary

Kemper beats Third Point Reinsurance on 10 of the 16 factors compared between the two stocks.

Kemper Company Profile

Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States. The company's Property & Casualty Insurance segment provides automobile, homeowners, renters, fire, umbrella, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses. This segment distributes its products through independent agents and brokers. The Life & Health Insurance segment provides life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; Medicare supplement insurance; and limited health insurance coverages, such as fixed indemnity, specified disease, and accident-only plans to individuals in rural areas. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was founded in 1990 and is headquartered in Chicago, Illinois.

Third Point Reinsurance Company Profile

Third Point Reinsurance Ltd., through its subsidiaries, provides specialty property and casualty reinsurance products to insurance and reinsurance companies worldwide. It underwrites homeowners, workers compensation, personal automobile, mortgage, and multi-line reinsurance; professional, transactional, and general liability reinsurance; and marine, travel, and extended warranty reinsurance products. The company was incorporated in 2011 and is based in Pembroke, Bermuda.

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