Assurant (NYSE: AIZ) and National General Holdings Corp (NASDAQ:NGHC) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitabiliy, risk and earnings.
Earnings & Valuation
This table compares Assurant and National General Holdings Corp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Assurant||$6.94 billion||0.82||$943.68 million||$8.14||12.84|
|National General Holdings Corp||$3.84 billion||0.62||$277.98 million||$1.18||18.81|
Assurant has higher revenue and earnings than National General Holdings Corp. Assurant is trading at a lower price-to-earnings ratio than National General Holdings Corp, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for Assurant and National General Holdings Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National General Holdings Corp||0||1||2||0||2.67|
Assurant presently has a consensus target price of $93.40, suggesting a potential downside of 10.60%. National General Holdings Corp has a consensus target price of $25.00, suggesting a potential upside of 12.66%. Given National General Holdings Corp’s stronger consensus rating and higher possible upside, analysts clearly believe National General Holdings Corp is more favorable than Assurant.
Insider and Institutional Ownership
92.2% of Assurant shares are owned by institutional investors. Comparatively, 53.8% of National General Holdings Corp shares are owned by institutional investors. 0.8% of Assurant shares are owned by insiders. Comparatively, 3.4% of National General Holdings Corp shares are owned by 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.
Risk & Volatility
Assurant has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, National General Holdings Corp has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
This table compares Assurant and National General Holdings Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National General Holdings Corp||3.70%||10.43%||2.23%|
Assurant pays an annual dividend of $2.12 per share and has a dividend yield of 2.0%. National General Holdings Corp pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Assurant pays out 26.0% of its earnings in the form of a dividend. National General Holdings Corp pays out 13.6% 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. National General Holdings Corp has raised its dividend for 13 consecutive years.
Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.
About National General Holdings Corp
National General Holdings Corp. is a specialty personal lines insurance holding company. Through its subsidiaries, the Company provides a range of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche products. It operates through two segments: Property and Casualty (P&C) and Accident and Health (A&H). Its P&C segment offers its P&C insurance products through a network of agents, a number of affinity partners and through direct-response marketing programs. Its A&H segment provides accident and non-major medical health insurance products targeting its existing P&C policyholders and the anticipated market of employed persons who are uninsured or underinsured. The P&C segment operates its business through three distribution channels: agency, affinity and direct. The A&H segment provides supplemental accident and health insurance products.
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