Patriot National (NYSE: PN) and Assurant (NYSE:AIZ) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Volatility and Risk
Patriot National has a beta of 2.74, suggesting that its stock price is 174% more volatile than the S&P 500. Comparatively, Assurant has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.
This table compares Patriot National and Assurant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Patriot National and Assurant, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Patriot National presently has a consensus target price of $7.75, indicating a potential upside of 242.92%. Assurant has a consensus target price of $98.33, indicating a potential downside of 1.68%. Given Patriot National’s higher probable upside, analysts plainly believe Patriot National is more favorable than Assurant.
Valuation and Earnings
This table compares Patriot National and Assurant’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Patriot National||$233.03 million||0.30||$31.71 million||($0.02)||-113.00|
|Assurant||$6.74 billion||0.80||$864.39 million||$7.60||13.16|
Assurant has higher revenue and earnings than Patriot National. Patriot National is trading at a lower price-to-earnings ratio than Assurant, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
15.7% of Patriot National shares are held by institutional investors. Comparatively, 90.4% of Assurant shares are held by institutional investors. 59.9% of Patriot National shares are held by company insiders. Comparatively, 0.8% of Assurant shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Assurant pays an annual dividend of $2.12 per share and has a dividend yield of 2.1%. Patriot National does not pay a dividend. Assurant pays out 27.9% of its earnings in the form of a dividend. Assurant has raised its dividend for 13 consecutive years.
Assurant beats Patriot National on 10 of the 16 factors compared between the two stocks.
Patriot National Company Profile
Patriot National, Inc. is an independent national provider of technology-enabled outsourcing solutions that help insurance carriers, employers and other clients mitigate risk and comply with complex regulations. It offers a range of end-to-end insurance related and specialty services. The Company principally offers approximately two types of services: front-end services, such as brokerage, underwriting and policyholder services, and back-end services, such as claims adjudication and administration. It also offers specialty services, including technology outsourcing and other information technology (IT) services, as well as employment pre-screening and background checks. The Company’s brokerage and policyholder services include general agency services and specialty underwriting and policyholder services provided to its insurance carrier clients. The Company’s claims administration services relate to the administration and resolution of workers’ compensation claims.
Assurant Company Profile
Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.
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