AMERISAFE (NASDAQ:AMSF) and Kemper (NYSE:KMPR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Risk & Volatility
AMERISAFE has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Kemper has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.
Valuation & Earnings
This table compares AMERISAFE and Kemper’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AMERISAFE||$370.37 million||3.00||$92.69 million||$4.60||12.48|
|Kemper||$5.04 billion||0.85||$531.10 million||$6.27||10.45|
Kemper has higher revenue and earnings than AMERISAFE. Kemper is trading at a lower price-to-earnings ratio than AMERISAFE, indicating that it is currently the more affordable of the two stocks.
AMERISAFE pays an annual dividend of $1.08 per share and has a dividend yield of 1.9%. Kemper pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. AMERISAFE pays out 23.5% of its earnings in the form of a dividend. Kemper pays out 19.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AMERISAFE has raised its dividend for 1 consecutive years and Kemper has raised its dividend for 1 consecutive years.
Insider & Institutional Ownership
98.9% of AMERISAFE shares are held by institutional investors. Comparatively, 71.3% of Kemper shares are held by institutional investors. 1.7% of AMERISAFE shares are held by company insiders. Comparatively, 1.7% of Kemper shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings for AMERISAFE and Kemper, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AMERISAFE presently has a consensus price target of $77.67, indicating a potential upside of 35.33%. Kemper has a consensus price target of $85.33, indicating a potential upside of 30.22%. Given AMERISAFE’s higher probable upside, research analysts clearly believe AMERISAFE is more favorable than Kemper.
This table compares AMERISAFE and Kemper’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AMERISAFE beats Kemper on 9 of the 16 factors compared between the two stocks.
AMERISAFE Company Profile
AMERISAFE, Inc., an insurance holding company, underwrites workers' compensation insurance in the United States. Its workers' compensation insurance policies provide benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. The company provides workers' compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, agriculture, maritime, and oil and gas. The company was incorporated in 1985 and is headquartered in DeRidder, Louisiana.
Kemper Company Profile
Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance. It provides automobile, homeowners, renters, fire, umbrella, general liability, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses. The company also offers life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; Medicare supplement insurance, fixed hospital indemnity, home health care, specified disease, and accident-only plans to individuals in rural, suburban, and urban areas. It distributes its products through independent agents and brokers. 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.
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