Tokio Marine (OTCMKTS:TKOMY) and AMERISAFE (NASDAQ:AMSF) Critical Contrast

Tokio Marine (OTCMKTS:TKOMY) and AMERISAFE (NASDAQ:AMSF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Tokio Marine and AMERISAFE, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tokio Marine 0 0 1 0 3.00
AMERISAFE 0 1 0 0 2.00

Earnings & Valuation

This table compares Tokio Marine and AMERISAFE’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tokio Marine $50.28 billion 0.67 $2.39 billion $3.53 13.72
AMERISAFE $370.37 million 3.33 $92.69 million $4.60 13.88

Tokio Marine has higher revenue and earnings than AMERISAFE. Tokio Marine is trading at a lower price-to-earnings ratio than AMERISAFE, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Tokio Marine has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, AMERISAFE has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Profitability

This table compares Tokio Marine and AMERISAFE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tokio Marine 3.73% 6.66% 0.94%
AMERISAFE 26.84% 20.22% 5.99%

Institutional & Insider Ownership

0.1% of Tokio Marine shares are held by institutional investors. Comparatively, 98.5% of AMERISAFE shares are held by institutional investors. 1.7% of AMERISAFE shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Tokio Marine pays an annual dividend of $2.15 per share and has a dividend yield of 4.4%. AMERISAFE pays an annual dividend of $1.16 per share and has a dividend yield of 1.8%. Tokio Marine pays out 60.9% of its earnings in the form of a dividend. AMERISAFE pays out 25.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AMERISAFE has increased its dividend for 1 consecutive years.

Summary

AMERISAFE beats Tokio Marine on 9 of the 16 factors compared between the two stocks.

About Tokio Marine

Tokio Marine Holdings, Inc., together with its subsidiaries, engages in non-life and life insurance, international insurance, and financial and general businesses worldwide. The company provides business, fire, Internet and mobile, rental housing, and natural catastrophe risk insurance services, as well as insurance for retail and corporate fields. It also provides property investment, insurance agency and risk consulting, human resource, in-home care and nursing care information, healthcare/medical, call center, and real estate-related services. Tokio Marine Holdings, Inc. serves individuals, small to medium sized non-profit organizations, schools, or churches. The company was formerly known as Millea Holdings, Inc. and changed its name to Tokio Marine Holdings, Inc. in 2008. Tokio Marine Holdings, Inc. was founded in 1879 and is headquartered in Tokyo, Japan.

About AMERISAFE

AMERISAFE, Inc., an insurance holding company, underwrites workers' compensation insurance in the United States. Its workers' compensation insurance policies provide benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. The company offers workers' compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, agriculture, maritime, and oil and gas. The company was incorporated in 1985 and is headquartered in DeRidder, Louisiana.

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