Kinsale Capital Group (NASDAQ: KNSL) and Alleghany (NYSE:Y) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Kinsale Capital Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.5%. Alleghany does not pay a dividend. Kinsale Capital Group pays out 22.4% of its earnings in the form of a dividend.
Kinsale Capital Group has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Alleghany has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Earnings and Valuation
This table compares Kinsale Capital Group and Alleghany’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kinsale Capital Group||$186.78 million||5.97||$24.90 million||$1.25||42.32|
|Alleghany||$6.42 billion||1.39||$90.13 million||$2.04||286.63|
Alleghany has higher revenue and earnings than Kinsale Capital Group. Kinsale Capital Group is trading at a lower price-to-earnings ratio than Alleghany, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Kinsale Capital Group and Alleghany, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kinsale Capital Group||0||1||2||0||2.67|
Kinsale Capital Group currently has a consensus price target of $45.50, suggesting a potential downside of 13.99%. Alleghany has a consensus price target of $650.00, suggesting a potential upside of 11.16%. Given Alleghany’s higher probable upside, analysts clearly believe Alleghany is more favorable than Kinsale Capital Group.
This table compares Kinsale Capital Group and Alleghany’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kinsale Capital Group||13.34%||12.29%||4.35%|
Insider & Institutional Ownership
82.4% of Kinsale Capital Group shares are owned by institutional investors. Comparatively, 82.1% of Alleghany shares are owned by institutional investors. 8.2% of Kinsale Capital Group shares are owned by insiders. Comparatively, 4.0% of Alleghany shares are owned 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.
Kinsale Capital Group beats Alleghany on 9 of the 16 factors compared between the two stocks.
About Kinsale Capital Group
Kinsale Capital Group, Inc. provides as a casualty and property insurance products in the United States. Its commercial lines offerings include construction, small business, energy, excess casualty, general casualty, product liability, professional liability, life sciences, allied health, health care, commercial property, management liability, environmental, public entity, inland marine, and commercial insurance, as well as homeowners insurance. The company markets and sells insurance products through a network of independent insurance brokers. Kinsale Capital Group, Inc. was founded in 2009 and is based in Richmond, Virginia.
Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company operates in two segments, Reinsurance and Insurance. The Reinsurance segment offers property reinsurance products, including fire, allied lines, auto physical damage, and homeowners multiple peril reinsurance products; and casualty and other reinsurance products, such as liability, medical malpractice, ocean marine and aviation, auto liability, accident and health, surety, and credit reinsurance products. This segment distributes its products and services through brokers, as well as directly to insurance and reinsurance companies. The Insurance segment underwrites specialty insurance coverages in the property, as well as umbrella/excess, general, management, and professional liability lines; and surety products comprising commercial and contract surety bonds, as well as workers' compensation insurance products. This segment distributes its products through independent wholesale insurance brokers, and retail and general insurance agents. The company also explores for and produces oil and gas; manufactures custom trailers and truck bodies for the moving and storage industry, and other markets; provides technical engineering services for pharmaceutical and biotechnology industries; and owns and manages improved and unimproved commercial land, and residential lots. In addition, it operates as a toy, and entertainment and musical instrument company; manufacturer/remanufacturer of specialty machine tools, as well as supplier of replacement parts, accessories, and services for various cutting technologies; structural steel fabricator and erector; and provider of products and services for the funeral and cemetery industries, and precast concrete markets. As of December 31, 2017, the company owned approximately 226 acres of property. Alleghany Corporation was founded in 1929 and is based in New York, New York.
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