Insurance

Trean Insurance Group (NASDAQ: TIG) and Kingsway Financial Services (NYSE: KFS) Financial Analysis


Trean Insurance Group (NASDAQ: TIGGet a rating) and Kingsway Financial Services (NYSE: KFSGet a rating) are both small cap finance companies, but which business is superior? We’ll compare the two companies based on their dividend strength, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

87.6% of Trean Insurance Group shares are held by institutional investors. By comparison, 74.6% of Kingsway Financial Services shares are held by institutional investors. 9.3% of the shares of Trean Insurance Group are held by insiders of the company. By comparison, 56.4% of Kingsway Financial Services shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of Trean Insurance Group and Kingsway Financial Services.

Net margins Return on equity return on assets
Trean Insurance Group 9.32% 5.32% 1.53%
Kingsway Financial Services -3.02% 163.46% 1.94%

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Trean Insurance Group and Kingsway Financial Services.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Trean Insurance Group $217.69 million 1.50 $19.33 million $0.43 14.79
Kingsway Financial Services $91.77 million 1.42 -$340,000.00 ($0.14) -38.57

Trean Insurance Group has higher revenues and profits than Kingsway Financial Services. Kingsway Financial Services trades at a lower price-to-earnings ratio than Trean Insurance Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for Trean Insurance Group and Kingsway Financial Services, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Trean Insurance Group 0 2 1 0 2.33
Kingsway Financial Services 0 0 0 0 N / A

Trean Insurance Group currently has a consensus target price of $10.00, indicating a potential upside of 57.23%. Given Trean Insurance Group’s likely higher upside, stock analysts clearly believe that Trean Insurance Group is more favorable than Kingsway Financial Services.

Risk and Volatility

Trean Insurance Group has a beta of 0.65, meaning its stock price is 35% less volatile than the S&P 500. In comparison, Kingsway Financial Services has a beta of -0.17, meaning its stock price is 117% less volatile than the S&P 500. .

Summary

Trean Insurance Group beats Kingsway Financial Services on 9 out of 12 factors compared between the two stocks.

About Trean Insurance Group (Get a rating)

Trean Insurance Group, Inc. underwrites specialty property and casualty insurance products in the United States. The Company underwrites corporate products, primarily workers’ compensation, accident and health, and medical malpractice products. It also offers a variety of services, including outgoing carrier, claims administration and reinsurance brokerage services. The Company offers its products through program partners and managing general agents. Trean Insurance Group, Inc. was founded in 1996 and is based in Wayzata, Minnesota.

About Kingsway Financial Services (Get a rating)

Kingsway Financial Services Inc., through its subsidiaries, is engaged in commercial extended warranty services, asset management and real estate. The Company operates through three segments: Extended Warranty, Leased Real Estate and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells and administers vehicle maintenance contracts and related products for new and used automobiles, motorcycles and ATVs. This segment also sells warranty products for new homes, as well as uninsured warrant administration services to builders and homeowners; markets and distributes warranty products to manufacturers, distributors and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to businesses. The Leased Real Estate segment owns approximately 192 acres of real estate located in the State of Texas. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting and analysis and strategic finance services; technical accounting including initial public offerings, SEC reports and international consolidation services; human resources, workforce management and compliance support services; and advisory services. The company offers its products and services through credit unions, dealers, home builders and consumers. Kingsway Financial Services Inc. was incorporated in 1989 and is based in Itasca, Illinois.



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