Amerisafe (NASDAQ:AMSF) and Kingstone Companies (NASDAQ:KINS) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
This is a summary of current ratings and target prices for Amerisafe and Kingstone Companies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Amerisafe currently has a consensus target price of $81.00, suggesting a potential upside of 15.65%. Kingstone Companies has a consensus target price of $13.00, suggesting a potential upside of 80.06%. Given Kingstone Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Kingstone Companies is more favorable than Amerisafe.
Amerisafe pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Kingstone Companies pays an annual dividend of $0.25 per share and has a dividend yield of 3.5%. Amerisafe pays out 25.9% of its earnings in the form of a dividend. Kingstone Companies pays out 53.2% 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 increased its dividend for 5 consecutive years and Kingstone Companies has increased its dividend for 6 consecutive years. Kingstone Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
99.9% of Amerisafe shares are held by institutional investors. Comparatively, 44.3% of Kingstone Companies shares are held by institutional investors. 1.7% of Amerisafe shares are held by company insiders. Comparatively, 8.9% of Kingstone Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Amerisafe and Kingstone Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Amerisafe and Kingstone Companies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Amerisafe||$377.75 million||3.58||$71.63 million||$3.86||18.15|
|Kingstone Companies||$113.77 million||0.68||$3.09 million||$0.47||15.36|
Amerisafe has higher revenue and earnings than Kingstone Companies. Kingstone Companies is trading at a lower price-to-earnings ratio than Amerisafe, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Amerisafe has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Amerisafe beats Kingstone Companies on 10 of the 16 factors compared between the two stocks.
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 based in DeRidder, Louisiana.
About Kingstone Companies
Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to small businesses and individuals in New York. The company offers personal lines insurance products, including homeowners and dwelling fire multi-peril, cooperative/condominiums, renters, and personal umbrella policies. It also provides commercial liability policies, such as business owner's policies comprising primarily of small business retail, service, and office risks; artisan's liability policies for small independent contractors; multi-peril policies for larger and specialized risks, and business owner's risks; and commercial umbrella policies. In addition, the company offers for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products. It sells its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.
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