Conifer Holdings (NASDAQ: CNFR) and Alleghany Corporation (NYSE:Y) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Volatility & Risk

Conifer Holdings has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Alleghany Corporation has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Valuation & Earnings

This table compares Conifer Holdings and Alleghany Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Conifer Holdings $100.97 million 0.48 -$7.78 million ($1.15) -5.57
Alleghany Corporation $6.16 billion 1.41 $888.24 million $30.86 18.25

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

Institutional & Insider Ownership

28.9% of Conifer Holdings shares are held by institutional investors. Comparatively, 81.8% of Alleghany Corporation shares are held by institutional investors. 45.5% of Conifer Holdings shares are held by insiders. Comparatively, 4.0% of Alleghany Corporation 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.

Profitability

This table compares Conifer Holdings and Alleghany Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Conifer Holdings -8.65% -14.14% -4.74%
Alleghany Corporation 7.74% 5.70% 1.93%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Conifer Holdings and Alleghany Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conifer Holdings 0 1 0 0 2.00
Alleghany Corporation 0 1 0 0 2.00

Summary

Alleghany Corporation beats Conifer Holdings on 8 of the 10 factors compared between the two stocks.

Conifer Holdings Company Profile

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.

Alleghany Corporation Company Profile

Alleghany Corporation is an insurance holding company. The Company, through its subsidiary Alleghany Insurance Holdings LLC (AIHL) and its subsidiaries, is engaged in the property and casualty insurance business. AIHL’s insurance operations are conducted by its subsidiaries RSUI Group, Inc. (RSUI), CapSpecialty, Inc. (CapSpecialty) and Pacific Compensation Corporation (PacificComp). Its segments include reinsurance and insurance. Its reinsurance segment consists of property and casualty reinsurance operations conducted by Transatlantic Holdings, Inc. reinsurance operating subsidiaries. Its insurance segment consists of property and casualty insurance operations conducted by AIHL through its insurance operating subsidiaries RSUI, CapSpecialty and PacificComp. AIHL Re LLC, which is a captive reinsurance company, provides reinsurance to its insurance operating subsidiaries and affiliates.

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