RLI (RLI) versus Conifer (CNFR) Financial Comparison

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

Institutional & Insider Ownership

89.3% of RLI shares are owned by institutional investors. Comparatively, 22.6% of Conifer shares are owned by institutional investors. 5.0% of RLI shares are owned by company insiders. Comparatively, 52.5% of Conifer shares are owned 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 & Valuation

This table compares RLI and Conifer’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RLI $818.12 million 4.00 $64.18 million $2.05 35.89
Conifer $98.91 million 0.39 -$9.23 million ($0.44) -10.55

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

Profitability

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

Net Margins Return on Equity Return on Assets
RLI 7.84% 10.96% 3.05%
Conifer -9.33% -7.84% -1.62%

Risk and Volatility

RLI has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Conifer has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Dividends

RLI pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Conifer does not pay a dividend. RLI pays out 42.9% of its earnings in the form of a dividend. RLI has increased its dividend for 42 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for RLI and Conifer, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RLI 1 3 0 0 1.75
Conifer 0 0 2 0 3.00

RLI presently has a consensus target price of $59.00, indicating a potential downside of 19.82%. Conifer has a consensus target price of $6.50, indicating a potential upside of 40.09%. Given Conifer’s stronger consensus rating and higher possible upside, analysts plainly believe Conifer is more favorable than RLI.

Summary

RLI beats Conifer on 11 of the 17 factors compared between the two stocks.

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.

Conifer Company Profile

Conifer Holdings, Inc., an insurance holding company, offers insurance coverage in specialty commercial and personal product lines. The company underwrites various specialty insurance products, including property, general liability, commercial multi-peril, liquor liability, and automobile policies. It serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, such as companies that provide security guard services, security alarm products and services, and private investigative services. The company also offers specialty homeowners insurance products, such as dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wind-exposed catastrophe coverage comprising hurricane and wind coverage to under-served homeowners in Hawaii, Texas, and Florida. It markets and sells its insurance products through a network of approximately 7,000 independent agents in 50 states in the United States. Conifer Holdings, Inc. was founded in 2009 and is headquartered in Birmingham, Michigan.

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