Head-To-Head Review: NI (NODK) versus RLI (RLI)

NI (NASDAQ:NODK) and RLI (NYSE:RLI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Dividends

RLI pays an annual dividend of $0.88 per share and has a dividend yield of 1.3%. NI does not pay a dividend. RLI pays out 42.9% of its earnings in the form of a dividend. RLI has raised its dividend for 42 consecutive years.

Volatility and Risk

NI has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, RLI has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares NI and RLI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NI 14.42% 9.61% 5.95%
RLI 7.84% 10.96% 3.05%

Valuation and Earnings

This table compares NI and RLI’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NI $189.14 million 1.83 $15.99 million N/A N/A
RLI $818.12 million 3.81 $64.17 million $2.05 34.14

RLI has higher revenue and earnings than NI.

Analyst Recommendations

This is a summary of recent ratings for NI and RLI, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NI 0 0 0 0 N/A
RLI 1 3 0 0 1.75

RLI has a consensus target price of $59.00, suggesting a potential downside of 15.70%. Given RLI’s higher probable upside, analysts plainly believe RLI is more favorable than NI.

Insider and Institutional Ownership

21.0% of NI shares are held by institutional investors. Comparatively, 88.1% of RLI shares are held by institutional investors. 0.4% of NI shares are held by company insiders. Comparatively, 5.5% of RLI 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.

Summary

RLI beats NI on 11 of the 14 factors compared between the two stocks.

NI Company Profile

NI Holdings, Inc. underwrites property and casualty insurance products in North Dakota, South Dakota, Nebraska, Minnesota, Nevada, and Arizona. Its products include multi-peril crop, crop hail, private passenger automobile, farm owners, homeowners, and commercial property and liability insurance policies. The company distributes its insurance products through independent producers and agents. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. is a subsidiary of Nodak Mutual Group, Inc.

RLI Company Profile

RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. This segment also offers coverages for security guards and in the areas of onshore energy-related businesses and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages focuses on providing errors and omission coverage to small to medium-sized design, technical, computer, and miscellaneous professionals. In addition, this segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and equipment dealers; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and fidelity coverages, and for low to moderate classes of risks, including public and private businesses; and healthcare liability and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers small bonds for businesses and individuals; bonds for small to medium-sized contractors; commercial surety bonds for medium-to-large businesses; and commercial surety bonds for the energy, petrochemical, and refining industries. The company also underwrites various reinsurance coverages. The company markets its products through branch offices and independent agents. RLI Corp. was founded in 1965 and is headquartered in Peoria, Illinois.

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