Allied World Assurance Company Holdings (NYSE: AWH) and Conifer Holdings (NASDAQ:CNFR) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Volatility & Risk

Allied World Assurance Company Holdings has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Conifer Holdings has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

86.5% of Allied World Assurance Company Holdings shares are held by institutional investors. Comparatively, 33.5% of Conifer Holdings shares are held by institutional investors. 3.2% of Allied World Assurance Company Holdings shares are held by insiders. Comparatively, 44.2% of Conifer Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Allied World Assurance Company Holdings and Conifer Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allied World Assurance Company Holdings 0 6 0 0 2.00
Conifer Holdings 0 1 0 0 2.00

Allied World Assurance Company Holdings currently has a consensus target price of $39.25, suggesting a potential downside of 20.29%. Given Allied World Assurance Company Holdings’ higher possible upside, equities research analysts plainly believe Allied World Assurance Company Holdings is more favorable than Conifer Holdings.

Dividends

Allied World Assurance Company Holdings pays an annual dividend of $0.52 per share and has a dividend yield of 1.1%. Conifer Holdings does not pay a dividend. Allied World Assurance Company Holdings pays out 17.9% of its earnings in the form of a dividend. Conifer Holdings has raised its dividend for 3 consecutive years.

Profitability

This table compares Allied World Assurance Company Holdings and Conifer Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allied World Assurance Company Holdings 12.56% 8.96% 2.42%
Conifer Holdings -8.65% -14.14% -4.74%

Earnings and Valuation

This table compares Allied World Assurance Company Holdings and Conifer Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allied World Assurance Company Holdings N/A N/A N/A $2.90 16.98
Conifer Holdings $100.97 million 0.50 -$7.78 million ($1.15) -5.74

Allied World Assurance Company Holdings has higher revenue, but lower earnings than Conifer Holdings. Conifer Holdings is trading at a lower price-to-earnings ratio than Allied World Assurance Company Holdings, indicating that it is currently the more affordable of the two stocks.

Summary

Allied World Assurance Company Holdings beats Conifer Holdings on 7 of the 12 factors compared between the two stocks.

About Allied World Assurance Company Holdings

Allied World Assurance Company Holdings Ltd is a Germany-based holding company. It provides property, casualty and specialty insurance and reinsurance solutions to clients around the world. The Company operates in three segments: North American Insurance, Global Markets Insurance and Reinsurance. The North American Insurance segment consists of the Company’s direct insurance operations in the United States, Bermuda and Canada. The Global Markets Insurance segment includes all of the Company’s direct insurance operations outside of North America. The Company’s reinsurance segment includes the reinsurance of property, general casualty, professional liability, specialty lines and property catastrophe coverage’s written by other reinsurance companies. The Company leases space in Australia, Bermuda, Canada, Hong Kong, Ireland, Labuan, Singapore, the United Kingdom and the United States for the operation of its North American Insurance, Global Markets Insurance and Reinsurance segments.

About Conifer Holdings

Conifer Holdings, Inc. is an insurance holding company. Through its insurance company subsidiaries, the Company offers insurance coverage in both specialty commercial and specialty personal product lines. It operates through two segments: commercial lines and personal lines. It is engaged in underwriting and marketing insurance coverage, and administering claims processing for such policies. The Company offers coverage for property, liability, automobile, and other miscellaneous coverage primarily to owner-operated small and mid-sized businesses, professional organizations and hospitality businesses, such as restaurants, bars and taverns. The Company offers coverage for low-value dwelling, wind-exposed homeowners and automobile. Its personal lines products include Catastrophe coverage, including hurricane and wind coverage, to underserved homeowners in Florida, Hawaii and Texas, and Dwelling insurance.

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