Employers (NYSE:EIG) and 1347 Property Insurance (NASDAQ:PIH) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
This table compares Employers and 1347 Property Insurance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|1347 Property Insurance||2.51%||3.68%||1.37%|
Employers pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. 1347 Property Insurance does not pay a dividend. Employers pays out 27.7% of its earnings in the form of a dividend. Employers has increased its dividend for 2 consecutive years.
Insider & Institutional Ownership
79.1% of Employers shares are held by institutional investors. Comparatively, 25.3% of 1347 Property Insurance shares are held by institutional investors. 3.0% of Employers shares are held by insiders. Comparatively, 47.2% of 1347 Property Insurance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Employers and 1347 Property Insurance, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|1347 Property Insurance||0||0||1||0||3.00|
Employers presently has a consensus price target of $47.00, indicating a potential downside of 0.04%. 1347 Property Insurance has a consensus price target of $9.00, indicating a potential upside of 54.11%. Given 1347 Property Insurance’s higher probable upside, analysts plainly believe 1347 Property Insurance is more favorable than Employers.
Earnings & Valuation
This table compares Employers and 1347 Property Insurance’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Employers||$799.30 million||1.93||$101.20 million||$2.89||16.27|
|1347 Property Insurance||$38.15 million||0.92||$290,000.00||$0.13||44.92|
Employers has higher revenue and earnings than 1347 Property Insurance. Employers is trading at a lower price-to-earnings ratio than 1347 Property Insurance, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Employers has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, 1347 Property Insurance has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.
Employers beats 1347 Property Insurance on 11 of the 15 factors compared between the two stocks.
Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; and alternative distribution channels comprising its partners, as well as through national, regional, and local trade groups and associations. Employers Holdings, Inc. was founded in 2000 and is based in Reno, Nevada.
About 1347 Property Insurance
1347 Property Insurance Holdings, Inc., through its subsidiaries, provides property and casualty insurance products to individuals in Louisiana, Florida, and Texas. The company offers homeowners' insurance, manufactured home insurance, dwelling fire insurance, and wind/hail insurance products, as well as reinsurance products. It offers its insurance policies through a network of independent agents. The company was formerly known as Maison Insurance Holdings, Inc. and changed its name to 1347 Property Insurance Holdings, Inc. in March 2014. 1347 Property Insurance Holdings, Inc. was founded in 2012 and is based in Tampa, Florida.
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