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

Volatility and Risk

Conifer has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, ProAssurance has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

25.6% of Conifer shares are owned by institutional investors. Comparatively, 80.2% of ProAssurance shares are owned by institutional investors. 45.5% of Conifer shares are owned by company insiders. Comparatively, 1.8% of ProAssurance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Conifer -27.29% -43.07% -12.67%
ProAssurance 16.18% 6.75% 2.50%

Dividends

ProAssurance pays an annual dividend of $1.24 per share and has a dividend yield of 2.3%. Conifer does not pay a dividend. ProAssurance pays out 46.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Conifer and ProAssurance’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Conifer $93.88 million 0.55 -$8.43 million ($3.42) -1.77
ProAssurance $870.21 million 3.37 $151.08 million $2.69 20.43

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Conifer and ProAssurance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conifer 0 1 0 0 2.00
ProAssurance 0 4 0 0 2.00

ProAssurance has a consensus target price of $58.33, suggesting a potential upside of 6.16%. Given ProAssurance’s higher probable upside, analysts plainly believe ProAssurance is more favorable than Conifer.

Summary

ProAssurance beats Conifer on 10 of the 13 factors compared between the two stocks.

Conifer Company Profile

Conifer Holdings, Inc. is an insurance holding company. Through its insurance company subsidiaries, the Company offers insurance coverage in both specialty commercial and specialty personal product lines. It operates through two segments: commercial lines and personal lines. It is engaged in underwriting and marketing insurance coverage, and administering claims processing for such policies. The Company offers coverage for property, liability, automobile, and other miscellaneous coverage primarily to owner-operated small and mid-sized businesses, professional organizations and hospitality businesses, such as restaurants, bars and taverns. The Company offers coverage for low-value dwelling, wind-exposed homeowners and automobile. Its personal lines products include Catastrophe coverage, including hurricane and wind coverage, to underserved homeowners in Florida, Hawaii and Texas, and Dwelling insurance.

ProAssurance Company Profile

ProAssurance Corporation (ProAssurance) is a holding company for property and casualty insurance companies. The Company provides professional liability insurance for healthcare professionals and facilities, professional liability insurance for attorneys, liability insurance for medical technology and life sciences risks, and workers’ compensation insurance. The Company operates through four segments. The Specialty property and casualty segment includes the Company’s professional liability business, and medical technology and life sciences business. The Workers’ compensation segment includes its workers’ compensation business. Lloyd’s Syndicate 1729 (Syndicate 1729) segment includes business of Syndicate 1729, which underwrites risks over a range of property and casualty insurance and reinsurance lines. The Corporate segment includes the Company’s investment operations managed at the corporate level and non-premium revenues generated outside of its insurance entities.

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