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

Dividends

RenaissanceRe pays an annual dividend of $1.36 per share and has a dividend yield of 0.7%. Conifer does not pay a dividend. RenaissanceRe pays out 14.8% of its earnings in the form of a dividend. RenaissanceRe has raised its dividend for 14 consecutive years.

Insider and Institutional Ownership

8.6% of Conifer shares are owned by institutional investors. Comparatively, 93.1% of RenaissanceRe shares are owned by institutional investors. 47.5% of Conifer shares are owned by insiders. Comparatively, 1.6% of RenaissanceRe shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Conifer $98.91 million 0.34 -$9.23 million ($0.44) -7.95
RenaissanceRe $2.07 billion 4.01 $227.36 million $9.17 20.53

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

Analyst Recommendations

This is a summary of current ratings for Conifer and RenaissanceRe, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conifer 0 1 0 0 2.00
RenaissanceRe 2 6 2 0 2.00

Conifer presently has a consensus target price of $6.50, suggesting a potential upside of 85.71%. RenaissanceRe has a consensus target price of $168.40, suggesting a potential downside of 10.53%. Given Conifer’s higher probable upside, research analysts plainly believe Conifer is more favorable than RenaissanceRe.

Profitability

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

Net Margins Return on Equity Return on Assets
Conifer -12.40% -34.09% -6.41%
RenaissanceRe 19.47% 8.87% 1.93%

Risk and Volatility

Conifer has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, RenaissanceRe has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.

Summary

RenaissanceRe beats Conifer on 12 of the 16 factors compared between the two stocks.

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.

RenaissanceRe Company Profile

RenaissanceRe Holdings Ltd. provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including earthquakes, hurricanes, and tsunamis, as well as claims arising from other natural and man-made catastrophes comprising winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, and binding facilities and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer's liability, casualty clash, umbrella or excess casualty, workers' compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. The company distributes its products and services primarily through intermediaries. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

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