Kemper Corporation (NYSE: KMPR) and American National Insurance (NASDAQ:ANAT) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Valuation & Earnings

This table compares Kemper Corporation and American National Insurance’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 0.91 $169.90 million $0.98 47.65
American National Insurance $3.28 billion 0.93 $260.52 million $7.23 15.71

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

Institutional & Insider Ownership

56.1% of Kemper Corporation shares are owned by institutional investors. Comparatively, 65.2% of American National Insurance shares are owned by institutional investors. 0.9% of Kemper Corporation shares are owned by company insiders. Comparatively, 23.5% of American National Insurance 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.

Dividends

Kemper Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 2.1%. American National Insurance pays an annual dividend of $3.28 per share and has a dividend yield of 2.9%. 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. American National Insurance pays out 45.4% of its earnings in the form of a dividend. American National Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper Corporation 0 2 0 1 2.67
American National Insurance 0 0 0 0 N/A

Kemper Corporation presently has a consensus target price of $55.00, suggesting a potential upside of 17.77%. Given Kemper Corporation’s higher probable upside, equities analysts plainly believe Kemper Corporation is more favorable than American National Insurance.

Profitability

This table compares Kemper Corporation and American National Insurance’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%
American National Insurance 5.95% 2.61% 0.50%

Risk & Volatility

Kemper Corporation has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, American National Insurance has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Summary

American National Insurance beats Kemper Corporation on 12 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.

American National Insurance Company Profile

American National Insurance Company is engaged in life insurance, annuities, and property and casualty insurance. The Company also offers limited health insurance. Its family of companies includes six life insurance companies, eight property and casualty insurance companies, and various non-insurance subsidiaries. Its business segments include Life, which offers products, such as Whole Life, Term Life, Universal Life, Variable Universal Life and Credit Life Insurance; Annuity, including products, such as Deferred Annuity, Single Premium Immediate Annuity and Variable Annuity; Health, including, such as Medicare Supplement, Supplemental Insurance, Stop-Loss, Credit Disability and Medical Expense; Property and Casualty, which offers products, such as Personal Lines, Commercial Lines and Credit-Related Property Insurance products, and Corporate and Other, which consists of its invested assets that are not used to support insurance activities, and non-insurance subsidiaries.

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