Contrasting Kemper (NYSE:KMPR) & Safety Insurance Group (SAFT)

Kemper (NYSE:KMPR) and Safety Insurance Group (NASDAQ:SAFT) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Profitability

This table compares Kemper and Safety Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kemper 6.24% 7.80% 1.91%
Safety Insurance Group 7.73% 9.74% 3.72%

Insider & Institutional Ownership

52.4% of Kemper shares are held by institutional investors. Comparatively, 80.2% of Safety Insurance Group shares are held by institutional investors. 0.9% of Kemper shares are held by insiders. Comparatively, 4.9% of Safety Insurance Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Kemper has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Safety Insurance Group has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Kemper and Safety Insurance Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper 0 0 1 0 3.00
Safety Insurance Group 0 1 0 0 2.00

Safety Insurance Group has a consensus price target of $70.00, suggesting a potential downside of 17.64%. Given Safety Insurance Group’s higher probable upside, analysts clearly believe Safety Insurance Group is more favorable than Kemper.

Dividends

Kemper pays an annual dividend of $0.96 per share and has a dividend yield of 1.2%. Safety Insurance Group pays an annual dividend of $3.20 per share and has a dividend yield of 3.8%. Kemper pays out 58.5% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Kemper and Safety Insurance Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kemper $2.72 billion 1.93 $120.90 million $1.64 49.56
Safety Insurance Group $839.11 million 1.55 $62.38 million N/A N/A

Kemper has higher revenue and earnings than Safety Insurance Group.

Summary

Safety Insurance Group beats Kemper on 8 of the 15 factors compared between the two stocks.

About Kemper

Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States. The company's Property & Casualty Insurance segment provides automobile, homeowners, renters, fire, umbrella, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses. This segment distributes its products through independent agents and brokers. The Life & Health Insurance segment provides life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; Medicare supplement insurance; and limited health insurance coverages, such as fixed indemnity, specified disease, and accident-only plans to individuals in rural areas. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was founded in 1990 and is headquartered in Chicago, Illinois.

About Safety Insurance Group

Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. The company's private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured's car occupants, and physical damage coverage for an insured's own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella policies, as well as underwrites dwelling fire insurance for non-owner occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies; and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is based in Boston, Massachusetts.

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