Aviva Plc (NYSE: AV) and AMERISAFE (NASDAQ:AMSF) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitabiliy.

Profitability

This table compares Aviva Plc and AMERISAFE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aviva Plc N/A N/A N/A
AMERISAFE 17.17% 14.04% 4.32%

Valuation & Earnings

This table compares Aviva Plc and AMERISAFE’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aviva Plc N/A N/A N/A N/A N/A
AMERISAFE $384.23 million 2.83 $95.81 million $3.43 16.55

AMERISAFE has higher revenue and earnings than Aviva Plc.

Dividends

Aviva Plc pays an annual dividend of $0.55 per share and has a dividend yield of 4.7%. AMERISAFE pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. AMERISAFE pays out 23.3% of its earnings in the form of a dividend. AMERISAFE has raised its dividend for 3 consecutive years.

Insider & Institutional Ownership

0.8% of Aviva Plc shares are owned by institutional investors. Comparatively, 99.7% of AMERISAFE shares are owned by institutional investors. 2.2% of AMERISAFE shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Aviva Plc and AMERISAFE, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviva Plc 1 3 1 0 2.00
AMERISAFE 0 0 1 0 3.00

AMERISAFE has a consensus price target of $64.00, indicating a potential upside of 12.78%. Given AMERISAFE’s stronger consensus rating and higher probable upside, analysts plainly believe AMERISAFE is more favorable than Aviva Plc.

Risk & Volatility

Aviva Plc has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, AMERISAFE has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Summary

AMERISAFE beats Aviva Plc on 9 of the 12 factors compared between the two stocks.

Aviva Plc Company Profile

Aviva plc is a holding company. The Company provides customers with long-term insurance and savings, general and health insurance, and fund management products and services. Its segments include United Kingdom & Ireland; France; Poland; Italy, Spain and Other; Canada; Asia; Aviva Investors, and Other Group activities. The United Kingdom and Ireland segment consists of two operating segments: Life and General Insurance. The principal activities of its French operations are long-term business and general insurance. Its Poland Activities in Poland consist of long-term business and general insurance operations. Its Italian operations are long-term business and general insurance. The principal activity of the Canadian operation is general insurance. Its activities in Asia consist of its long-term business operations in China, India, Singapore, Hong Kong, Vietnam, Indonesia, Taiwan and international operations. The Aviva Investors segment offers a range of asset management services.

AMERISAFE Company Profile

Amerisafe, Inc. is an insurance holding company. The Company is engaged in providing workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, and agriculture. It is engaged in underwriting the workers’ compensation exposures inherent in these industries. It provides coverage to employers under state and federal workers’ compensation laws. The Company’s workers’ compensation insurance policies provide benefits to injured employees for, temporary or permanent disability, death and medical and hospital expenses. The Company provides safety services at employers’ workplaces as a component of its underwriting process. It utilizes claims management practices. In addition to its voluntary workers’ compensation business, it underwrites workers’ compensation policies for employers assigned to the Company and assumes reinsurance premiums from mandatory pooling arrangements.

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