Analyzing Maiden (NASDAQ:MHLD) and Kingsway Financial Services (NASDAQ:KFS)

Maiden (NASDAQ:MHLD) and Kingsway Financial Services (NYSE:KFS) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Maiden and Kingsway Financial Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maiden 0 2 0 0 2.00
Kingsway Financial Services 0 0 0 0 N/A

Maiden presently has a consensus price target of $1.00, indicating a potential upside of 99.24%. Given Maiden’s higher probable upside, analysts clearly believe Maiden is more favorable than Kingsway Financial Services.

Institutional & Insider Ownership

46.9% of Maiden shares are held by institutional investors. Comparatively, 28.0% of Kingsway Financial Services shares are held by institutional investors. 10.5% of Maiden shares are held by company insiders. Comparatively, 49.0% of Kingsway Financial Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Maiden and Kingsway Financial Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Maiden $2.16 billion 0.02 -$544.62 million N/A N/A
Kingsway Financial Services $52.64 million 1.23 -$26.68 million N/A N/A

Kingsway Financial Services has lower revenue, but higher earnings than Maiden.

Dividends

Maiden pays an annual dividend of $0.05 per share and has a dividend yield of 10.0%. Kingsway Financial Services does not pay a dividend.

Volatility & Risk

Maiden has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Kingsway Financial Services has a beta of -0.22, suggesting that its stock price is 122% less volatile than the S&P 500.

Profitability

This table compares Maiden and Kingsway Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maiden -42.41% -287.90% -9.09%
Kingsway Financial Services -30.73% -57.59% -4.04%

Summary

Kingsway Financial Services beats Maiden on 6 of the 11 factors compared between the two stocks.

About Maiden

Maiden Holdings, Ltd., through its subsidiaries, provides reinsurance solutions to regional and specialty insurers primarily in Europe and internationally. The company writes treaties on a quota share basis and excess of loss basis. It also offers auto and credit life insurance products through its insurer partners to retail clients. Maiden Holdings, Ltd. was founded in 2007 and is headquartered in Pembroke, Bermuda.

About Kingsway Financial Services

Kingsway Financial Services Inc., through its subsidiaries, provides property and casualty insurance products in the United States. The company operates through three segments: Insurance Underwriting, Extended Warranty, and Leased Real Estate. The Insurance Underwriting segment offers various automobile insurance products, including liability insurance that covers claims against its insured's responsible for automobile accidents; accident benefit policies or personal injury protection policies that provide coverage for loss of income, medical, and rehabilitation expenses for insured persons who are injured in an automobile accident; and physical damage policies, which cover damages to an insured automobile arising from a collision with another object, as well as from other risks, such as fire or theft. The Extended Warranty segment markets and administers vehicle service agreements and related products for new and used automobiles. This segment also markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and refrigeration equipment; and equipment breakdown and maintenance support services to companies. The Leased Real Estate segment owns the Real Property, which is subject to a long-term triple net lease agreement. The company offers its products and services to credit unions, consumers, and businesses through a network of independent agencies. Kingsway Financial Services Inc. was founded in 1989 and is based in Itasca, Illinois.

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