Kinsale Capital Group (NASDAQ: KNSL) and Unico American Corporation (NASDAQ:UNAM) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Kinsale Capital Group and Unico American Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kinsale Capital Group 16.25% 12.31% 4.26%
Unico American Corporation -12.14% -6.52% -3.15%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kinsale Capital Group and Unico American Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinsale Capital Group 0 0 2 0 3.00
Unico American Corporation 0 0 0 0 N/A

Kinsale Capital Group presently has a consensus target price of $43.50, indicating a potential downside of 0.05%. Given Kinsale Capital Group’s higher possible upside, equities research analysts clearly believe Kinsale Capital Group is more favorable than Unico American Corporation.

Institutional and Insider Ownership

79.8% of Kinsale Capital Group shares are held by institutional investors. Comparatively, 29.1% of Unico American Corporation shares are held by institutional investors. 11.2% of Kinsale Capital Group shares are held by insiders. Comparatively, 54.1% of Unico American Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Kinsale Capital Group and Unico American Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kinsale Capital Group $163.42 million 5.58 $46.37 million $1.25 34.82
Unico American Corporation $36.22 million 1.43 -$6.16 million ($0.83) -11.75

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

Dividends

Kinsale Capital Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Unico American Corporation does not pay a dividend. Kinsale Capital Group pays out 19.2% of its earnings in the form of a dividend.

Volatility & Risk

Kinsale Capital Group has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, Unico American Corporation has a beta of -0.53, meaning that its stock price is 153% less volatile than the S&P 500.

Summary

Kinsale Capital Group beats Unico American Corporation on 12 of the 14 factors compared between the two stocks.

Kinsale Capital Group Company Profile

Kinsale Capital Group, Inc. is a specialty insurance company. The Company focuses on the excess and surplus lines (E&S) market in the United States. The Company operates through the Excess and Surplus Lines Insurance segment. The Company markets and sells these insurance products in approximately 50 states and the District of Columbia through a network of independent insurance brokers. The Company’s commercial lines offerings include construction, small business, excess casualty, general casualty, energy, professional liability, life sciences, product liability, allied health, healthcare, commercial property, management liability, environmental, inland marine, commercial insurance and public entity. The Company writes an array of coverages with a focus on smaller commercial buyers. The Company also writes a small amount of homeowners insurance in the personal lines market. The Company’s subsidiaries include Kinsale Management, Inc. and Kinsale Insurance Company.

Unico American Corporation Company Profile

Unico American Corporation is an insurance holding company. The Company underwrites property and casualty insurance through its insurance company subsidiary. It also provides property, casualty and health insurance through its agency subsidiaries and provides insurance premium financing and membership association services through its other subsidiaries. The Company’s operations are categorized between the Company’s segment, the insurance company operation and other insurance operations. The Company’s remaining operations constitute a range of specialty insurance services. The Company’s insurance company operation is conducted through Crusader Insurance Company (Crusader), its property and casualty insurance company. Crusader is a multiple line property and casualty insurance company. Crusader is licensed as an admitted insurance carrier in the states of Arizona, California, Nevada, Oregon and Washington.

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