State National Companies (NASDAQ: SNC) and Meadowbrook Insurance Group (NYSE:MIG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Valuation and Earnings

This table compares State National Companies and Meadowbrook Insurance Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
State National Companies $235.57 million 3.75 $91.47 million $1.28 16.36
Meadowbrook Insurance Group N/A N/A N/A N/A N/A

State National Companies has higher revenue and earnings than Meadowbrook Insurance Group.

Analyst Recommendations

This is a summary of recent recommendations for State National Companies and Meadowbrook Insurance Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
State National Companies 1 1 2 0 2.25
Meadowbrook Insurance Group 0 0 0 0 N/A

State National Companies currently has a consensus price target of $30.00, indicating a potential upside of 43.27%. Given State National Companies’ higher possible upside, research analysts plainly believe State National Companies is more favorable than Meadowbrook Insurance Group.

Dividends

State National Companies pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Meadowbrook Insurance Group does not pay a dividend. State National Companies pays out 18.8% of its earnings in the form of a dividend.

Profitability

This table compares State National Companies and Meadowbrook Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
State National Companies 22.98% 17.65% 1.80%
Meadowbrook Insurance Group 4.54% 7.19% 1.16%

Institutional & Insider Ownership

57.2% of State National Companies shares are owned by institutional investors. 34.8% of State National Companies 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.

Summary

State National Companies beats Meadowbrook Insurance Group on 9 of the 10 factors compared between the two stocks.

State National Companies Company Profile

State National Companies, Inc. is a specialty provider of property and casualty insurance. The Company’s segments include Program Services, Lender Services and Corporate. In the Program Services segment, the Company operates an issuing carrier (fronting) business to provide insurance capacity access to the United States property and casualty insurance markets. In the Lender Services segment, the Company specializes in providing collateral protection insurance, which insures automobiles held as collateral for loans made by financial institutions. The Company writes its insurance business through its insurance company subsidiaries, which include State National Insurance Company, Inc. (SNIC), National Specialty Insurance Company (NSIC) and United Specialty Insurance Company (USIC). As of December 31, 2016, SNIC and NSIC were admitted carriers licensed to write property and casualty business in all 50 states and the District of Columbia. USIC is an admitted carrier in Delaware.

Meadowbrook Insurance Group Company Profile

Meadowbrook Insurance Group, Inc. (Meadowbrook) is a holding company. The Company is a commercial insurance underwriter and insurance administration services company. The Company markets and underwrites specialty property and casualty insurance programs and products through a network of independent retail agents, wholesalers, program administrators and general agents. The Company’s products include Admitted Programs and Standard Market Products, Main Street Excess and Surplus Lines, Non-Admitted Programs, and Specialty Market Products. The Company is also involved in a range of activities, including program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control and reinsurance. The Company also provides the following services to its fee-for-service and agency clients: administration of risk-bearing entities and agency services.

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