Kemper Corporation (NYSE: KMPR) and Patriot National (NYSE:PN) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitabiliy, earnings and risk.

Profitability

This table compares Kemper Corporation and Patriot National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kemper Corporation 1.95% 1.26% 0.31%
Patriot National -0.35% 7.15% 1.91%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kemper Corporation and Patriot National, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper Corporation 0 3 0 1 2.50
Patriot National 0 2 0 0 2.00

Kemper Corporation currently has a consensus target price of $55.00, suggesting a potential upside of 13.87%. Patriot National has a consensus target price of $7.75, suggesting a potential upside of 260.47%. Given Patriot National’s higher possible upside, analysts clearly believe Patriot National is more favorable than Kemper Corporation.

Dividends

Kemper Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 2.0%. Patriot National does not pay a dividend. Kemper Corporation pays out 98.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

55.1% of Kemper Corporation shares are owned by institutional investors. Comparatively, 15.7% of Patriot National shares are owned by institutional investors. 0.9% of Kemper Corporation shares are owned by company insiders. Comparatively, 59.9% of Patriot National shares are owned by company 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.

Volatility and Risk

Kemper Corporation has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Patriot National has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500.

Valuation and Earnings

This table compares Kemper Corporation and Patriot National’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kemper Corporation $2.62 billion 0.95 $169.90 million $0.98 49.29
Patriot National $233.03 million 0.25 $31.71 million ($0.02) -107.50

Kemper Corporation has higher revenue and earnings than Patriot National. Patriot National is trading at a lower price-to-earnings ratio than Kemper Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Kemper Corporation beats Patriot National on 9 of the 15 factors compared between the two stocks.

Kemper Corporation Company Profile

Kemper Corporation (Kemper) is a diversified insurance holding company. The Company, through its subsidiaries, provides automobile, homeowners, life, health and other insurance products to individuals and businesses. The Company operates through two segments: Property & Casualty Insurance, and Life & Health Insurance. The Property & Casualty Insurance segment’s products include personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.

Patriot National Company Profile

Patriot National, Inc. is an independent national provider of technology-enabled outsourcing solutions that help insurance carriers, employers and other clients mitigate risk and comply with complex regulations. It offers a range of end-to-end insurance related and specialty services. The Company principally offers approximately two types of services: front-end services, such as brokerage, underwriting and policyholder services, and back-end services, such as claims adjudication and administration. It also offers specialty services, including technology outsourcing and other information technology (IT) services, as well as employment pre-screening and background checks. The Company’s brokerage and policyholder services include general agency services and specialty underwriting and policyholder services provided to its insurance carrier clients. The Company’s claims administration services relate to the administration and resolution of workers’ compensation claims.

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