Reviewing AmTrust Financial Services (AFSI) and Protective Insurance (PTVCA)

AmTrust Financial Services (NASDAQ:AFSI) and Protective Insurance (NASDAQ:PTVCA) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

AmTrust Financial Services pays an annual dividend of $0.34 per share and has a dividend yield of 2.3%. Protective Insurance pays an annual dividend of $1.12 per share and has a dividend yield of 5.4%. AmTrust Financial Services has increased its dividend for 11 consecutive years.

Volatility & Risk

AmTrust Financial Services has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Protective Insurance has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for AmTrust Financial Services and Protective Insurance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmTrust Financial Services 0 3 0 0 2.00
Protective Insurance 0 0 0 0 N/A

AmTrust Financial Services currently has a consensus target price of $14.83, indicating a potential upside of 0.56%. Given AmTrust Financial Services’ higher possible upside, equities analysts plainly believe AmTrust Financial Services is more favorable than Protective Insurance.

Profitability

This table compares AmTrust Financial Services and Protective Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmTrust Financial Services 3.98% -17.61% -1.84%
Protective Insurance 1.59% -0.37% -0.11%

Institutional and Insider Ownership

38.0% of AmTrust Financial Services shares are held by institutional investors. Comparatively, 1.5% of Protective Insurance shares are held by institutional investors. 50.8% of AmTrust Financial Services shares are held by insiders. Comparatively, 28.2% of Protective Insurance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares AmTrust Financial Services and Protective Insurance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AmTrust Financial Services $5.96 billion 0.49 -$348.88 million N/A N/A
Protective Insurance $371.23 million 0.84 $18.32 million N/A N/A

Protective Insurance has lower revenue, but higher earnings than AmTrust Financial Services.

Summary

AmTrust Financial Services beats Protective Insurance on 7 of the 12 factors compared between the two stocks.

AmTrust Financial Services Company Profile

AmTrust Financial Services, Inc. provides property and casualty insurance in the United States and internationally. The company operates in three segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program. The Small Commercial Business segment offers workers' compensation insurance products; and commercial package, and other property and casualty insurance products, such as commercial property, general liability, inland marine, employment practices liability, commercial automobile, and umbrella coverage to small businesses. The Specialty Risk and Extended Warranty segment provides custom designed coverages, such as accidental damage plans, mechanical breakdown protection, and payment protection plans in connection with the sale of consumer and commercial goods; and coverage for niche property, casualty, and specialty liability risks comprising general liability, employers' liability, and professional and medical liability. The Specialty Program segment offers workers' compensation, general liability, commercial auto liability, property coverage, excess and surplus lines programs, and other specialty commercial property and casualty insurance products to small and middle market companies. The company also provides reinsurance services primarily for personal and commercial automotive business. It distributes its policies third-party brokers, agents, retailers, or administrators. AmTrust Financial Services, Inc. was founded in 1998 and is based in New York, New York.

Protective Insurance Company Profile

Protective Insurance Corporation, through its subsidiaries, engages in marketing and underwriting property and casualty insurance products. The company offers a range of fleet transportation insurance products, including commercial motor vehicle liability, physical damage, and general liability insurance; workers compensation insurance; medical and indemnity insurance products; non-trucking motor vehicle liability insurance; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It also provides various additional services, such as risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. It serves trucking and public transportation fleets, as well as independent contractors in the trucking industry. The company primarily operates in the United States, Canada, Bermuda, and Puerto Rico. Protective Insurance Corporation was founded in 1930 and is headquartered in Carmel, Indiana.

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