Head-To-Head Comparison: National General (NGHC) and Tiptree (TIPT)

National General (NASDAQ:NGHC) and Tiptree (NASDAQ:TIPT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for National General and Tiptree, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National General 0 2 3 0 2.60
Tiptree 0 0 0 0 N/A

National General currently has a consensus target price of $30.20, indicating a potential upside of 26.52%. Given National General’s higher probable upside, analysts clearly believe National General is more favorable than Tiptree.

Earnings & Valuation

This table compares National General and Tiptree’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National General $4.43 billion 0.58 $105.84 million $1.09 21.90
Tiptree $581.80 million 0.35 $4.48 million N/A N/A

National General has higher revenue and earnings than Tiptree.

Profitability

This table compares National General and Tiptree’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National General 3.63% 15.64% 2.75%
Tiptree 5.41% -3.93% -0.87%

Insider & Institutional Ownership

48.3% of National General shares are owned by institutional investors. Comparatively, 65.9% of Tiptree shares are owned by institutional investors. 3.4% of National General shares are owned by insiders. Comparatively, 23.7% of Tiptree shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

National General pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Tiptree pays an annual dividend of $0.14 per share and has a dividend yield of 2.5%. National General pays out 14.7% of its earnings in the form of a dividend. National General has increased its dividend for 4 consecutive years and Tiptree has increased its dividend for 2 consecutive years.

Volatility and Risk

National General has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Tiptree has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500.

Summary

National General beats Tiptree on 9 of the 14 factors compared between the two stocks.

About National General

National General Holdings Corp., a specialty personal lines insurance holding company, provides various insurance products and services in the United States. The company operates in two segments, Property and Casualty, and Accident and Health. The Property and Casualty segment offers standard, preferred, and nonstandard automobile insurance products; and recreational vehicle (RV) insurance products that carry RV-specific endorsements comprising automatic personal effects coverage, optional replacement cost coverage, RV storage coverage, and full-time liability coverage. It also provides homeowners policies consisting of property and liability coverages for one-and two-family, and owner-occupied residences, as well as additional personal umbrella coverage to the homeowners. In addition, this segment offers small business automobile insurance products, which covers liability and physical damage caused by light-to-medium duty commercial vehicles; motorcycle insurance products for various types of motorcycles, as well as golf carts and all-terrain vehicles; and lender-placed insurance products, including fire, home, and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles. The Accident and Health segment provides accident and non-major medical health insurance products, such as accident/AD&D coverage in the event of bodily injury or death due to accidental means; hospital indemnity; short term coverage post discharge from acute care/rehab center to the nursing home setting; and short-term medical plans. This segment also offers cancer/critical illness policies, stop loss programs for small and large employers, and basic dental and vision coverage products. In addition, it distributes life and health insurance to groups and individuals. The company was formerly known as American Capital Acquisition Corporation. National General Holdings Corp. was founded in 1939 and is headquartered in New York, New York.

About Tiptree

Tiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States. It operates through three segments: Specialty Insurance, Asset Management, and Mortgage. The company provides credit protection insurance, warranty and service contract products, and insurance programs that underwrite niche personal and commercial lines of insurance, as well as offers value-add services, including premium finance and business processing services. It also engages in asset management operations; the provision of mortgage loans for institutional investors; and other investment activities. Tiptree Inc. markets its products through a network of independent insurance brokers and managing general agencies. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was incorporated in 2007 and is based in New York, New York.

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