Atlas Financial (NASDAQ: AFH) and Progressive (NYSE:PGR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Atlas Financial and Progressive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Financial 0 0 3 0 3.00
Progressive 2 8 4 1 2.27

Atlas Financial currently has a consensus price target of $18.50, suggesting a potential downside of 7.50%. Progressive has a consensus price target of $47.13, suggesting a potential downside of 9.10%. Given Atlas Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Atlas Financial is more favorable than Progressive.

Dividends

Progressive pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. Atlas Financial does not pay a dividend. Progressive pays out 28.3% of its earnings in the form of a dividend. Progressive has raised its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Atlas Financial and Progressive’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Atlas Financial $177.58 million 1.35 $2.64 million $0.14 142.87
Progressive $23.44 billion 1.29 $1.03 billion $2.40 21.60

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

Profitability

This table compares Atlas Financial and Progressive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Financial 0.92% -2.57% -0.78%
Progressive 5.41% 15.40% 3.72%

Risk & Volatility

Atlas Financial has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Progressive has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

80.3% of Atlas Financial shares are held by institutional investors. Comparatively, 79.1% of Progressive shares are held by institutional investors. 12.7% of Atlas Financial shares are held by insiders. Comparatively, 0.6% of Progressive shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Progressive beats Atlas Financial on 11 of the 17 factors compared between the two stocks.

Atlas Financial Company Profile

Atlas Financial Holdings Inc formerly JJR VI Acquisition Corp is a Canada-based company. It is engaged in the business of providing commercial automobile insurance in the United States with a niche market orientation. The Company’s automobile insurance products provide coverage in three areas: liability, accident benefits and physical damage. Liability insurance provides coverage where the insured is responsible for an automobile accident, for the payment for injuries and property damage to third parties. Accident benefit policies or personal injury protection policies provide coverage for loss of income, medical and rehabilitation expenses for insured persons who are injured in an automobile accident, Physical damage coverages provide for the payment of damages to an insured automobile arising from a collision with another object or from other risks. In January 2013, the Company acquired Camelot Services Inc. and its insurance subsidiary, Gateway Insurance Company.

Progressive Company Profile

The Progressive Corporation is an insurance holding company. The Company’s insurance subsidiaries and affiliates provide personal and commercial automobile and property insurance, other specialty property-casualty insurance and related services. The Company operates through the Personal Lines, Commercial Lines and Property segments. The Company’s Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. The Commercial Lines business writes primary liability, physical damage and other auto-related insurance for automobiles and trucks owned and/or operated predominately by small businesses as a part of the commercial auto market. ASI is a homeowner carrier in the United States, which specializes in personal and commercial property insurance, personal umbrella insurance, and primary and excess flood insurance. The Company’s service business includes Commercial Auto Insurance Procedures/Plans (CAIP) and Commission-based businesses.

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