Reviewing Kingstone Companies (KINS) & Markel (MKL)

Kingstone Companies (NASDAQ:KINS) and Markel (NYSE:MKL) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Kingstone Companies and Markel’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kingstone Companies $92.77 million 1.95 $9.98 million $0.94 18.05
Markel $6.06 billion 2.57 $395.26 million $3.62 309.94

Markel has higher revenue and earnings than Kingstone Companies. Kingstone Companies is trading at a lower price-to-earnings ratio than Markel, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kingstone Companies and Markel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kingstone Companies 5.83% 7.16% 2.67%
Markel 14.03% 9.72% 2.78%

Dividends

Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Markel does not pay a dividend. Kingstone Companies pays out 42.6% of its earnings in the form of a dividend. Kingstone Companies has raised its dividend for 5 consecutive years.

Insider & Institutional Ownership

50.8% of Kingstone Companies shares are owned by institutional investors. Comparatively, 75.8% of Markel shares are owned by institutional investors. 10.3% of Kingstone Companies shares are owned by company insiders. Comparatively, 2.5% of Markel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Kingstone Companies and Markel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kingstone Companies 0 0 1 0 3.00
Markel 0 3 2 0 2.40

Kingstone Companies presently has a consensus target price of $20.00, suggesting a potential upside of 17.86%. Markel has a consensus target price of $1,233.33, suggesting a potential upside of 9.92%. Given Kingstone Companies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Kingstone Companies is more favorable than Markel.

Volatility & Risk

Kingstone Companies has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Markel has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Summary

Markel beats Kingstone Companies on 11 of the 17 factors compared between the two stocks.

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 provides personal lines insurance products, such as homeowners and dwelling fire multi-peril, cooperative/condominium, renter, and personal umbrella policies. It also offers commercial liability policies comprising business owners policies, such as small business retail, service, and office risks without residential exposure to business owners; artisan's liability policies for small independent contractors; special multi-peril policies for business owners risks; and commercial umbrella policies. In addition, the company provides 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. Kingstone Companies, Inc. sells its products through independent 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 based in Kingston, New York.

About Markel

Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally. It operates through three segments: U.S. Insurance, International Insurance, and Reinsurance. The U.S. Insurance segment offers general and professional liability, property, personal line, program, and workers' compensation insurance products, as well as other insurance product lines, such as ocean marine, surety, CPI, and coverages. The International Insurance segment provides professional and general liability, marine and energy, and property insurance products, as well as other insurance product lines, including crime, contingency, accident and health, specialty, short-term trade credit, and other coverages. The Reinsurance segment offers property and casualty treaty reinsurance products; and other treaty reinsurance products, including structured and whole turnover credit, political risk, mortgage, and contract and commercial surety, as well as public entity, aviation, whole account, accident and health coverage, offshore and onshore marine and energy risks, and agriculture. The company also operates as an insurance-linked securities investment fund manager and reinsurance manager; manufacturer of transportation and other industrial equipment; and a management and IT consulting firm providing services and solutions to various customers, as well as offers capital solutions to asset and wealth management firms. Markel Corporation was founded in 1930 and is headquartered in Glen Allen, Virginia.

Receive News & Ratings for Kingstone Companies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kingstone Companies and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply