The Navigators Group (NAVG) versus Federated National Holding (FNHC) Head-To-Head Analysis
The Navigators Group (NASDAQ: NAVG) and Federated National Holding (NASDAQ:FNHC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
The Navigators Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Federated National Holding pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. The Navigators Group pays out 8.5% of its earnings in the form of a dividend. Federated National Holding pays out -168.4% 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. Federated National Holding is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares The Navigators Group and Federated National Holding’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Navigators Group||6.86%||6.53%||1.60%|
|Federated National Holding||-0.73%||-1.07%||-0.33%|
Risk & Volatility
The Navigators Group has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Federated National Holding has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for The Navigators Group and Federated National Holding, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Navigators Group||0||5||0||0||2.00|
|Federated National Holding||0||2||1||0||2.33|
The Navigators Group currently has a consensus target price of $56.50, indicating a potential downside of 4.64%. Federated National Holding has a consensus target price of $21.00, indicating a potential upside of 33.84%. Given Federated National Holding’s stronger consensus rating and higher possible upside, analysts plainly believe Federated National Holding is more favorable than The Navigators Group.
Earnings and Valuation
This table compares The Navigators Group and Federated National Holding’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Navigators Group||$1.24 billion||1.41||$135.66 million||$2.83||20.94|
|Federated National Holding||$366.50 million||0.56||$870,000.00||($0.19)||-82.58|
The Navigators Group has higher revenue and earnings than Federated National Holding. Federated National Holding is trading at a lower price-to-earnings ratio than The Navigators Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
73.9% of The Navigators Group shares are held by institutional investors. Comparatively, 62.3% of Federated National Holding shares are held by institutional investors. 24.1% of The Navigators Group shares are held by insiders. Comparatively, 10.8% of Federated National Holding shares are held by 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.
The Navigators Group beats Federated National Holding on 9 of the 15 factors compared between the two stocks.
About The Navigators Group
The Navigators Group, Inc. is an insurance holding company. The Company is an international insurance company focused on marine insurance. The Company’s segments include U.S. Insurance, International Insurance (Int’l Insurance), Global Reinsurance (GlobalRe) and Corporate. The Company’s Property and Casualty (P&C) insurance business primarily offers general liability coverage, and umbrella and excess liability coverage to commercial enterprises through its U.S. Insurance and Int’l Insurance segments. It also offers reinsurance products through its GlobalRe segment. It distributes its products through international, national and regional, retail and wholesale insurance brokers. The Company’s U.S. Insurance and Int’l Insurance segments consists of three segments, such as Marine, Property and Casualty (P&C) and Professional Liability. Its GlobalRe products include accident & health (A&H), marine, P&C and professional liability.
About Federated National Holding
Federated National Holding Company (FNHC) is an insurance holding company that controls all steps in the insurance underwriting, distribution and claims processes through its subsidiaries and its contractual relationships with its independent agents and general agents. The Company is authorized to underwrite homeowners’ multi-peril (homeowners), commercial general liability, federal flood, personal auto and various other lines of insurance in Florida and various other states. The Company markets, distributes and services its own and third-party insurers’ products and its other services through a network of independent agents. The Company’s insurance lines of business include Homeowners’ Property and Casualty Insurance, Commercial General Liability, Personal Automobile and Flood. FNIC and MNIC underwrite homeowners’ insurance in Florida, and FNIC underwrites insurance in Alabama, Louisiana and South Carolina. Alabama and Louisiana.
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