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

Earnings and Valuation

This table compares XL Group and Conifer Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
XL Group $10.55 billion 0.96 $440.96 million ($1.23) -32.03
Conifer Holdings $93.88 million 0.57 -$8.43 million ($3.42) -1.83

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

Risk & Volatility

XL Group has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Conifer Holdings has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Dividends

XL Group pays an annual dividend of $0.88 per share and has a dividend yield of 2.2%. Conifer Holdings does not pay a dividend. XL Group pays out -71.5% of its earnings in the form of a dividend. XL Group has increased its dividend for 4 consecutive years.

Insider & Institutional Ownership

97.4% of XL Group shares are held by institutional investors. Comparatively, 29.0% of Conifer Holdings shares are held by institutional investors. 3.0% of XL Group shares are held by insiders. Comparatively, 45.5% of Conifer Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for XL Group and Conifer Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XL Group 1 6 6 0 2.38
Conifer Holdings 0 1 0 0 2.00

XL Group presently has a consensus price target of $45.55, suggesting a potential upside of 15.60%. Given XL Group’s stronger consensus rating and higher probable upside, analysts plainly believe XL Group is more favorable than Conifer Holdings.

Profitability

This table compares XL Group and Conifer Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XL Group -2.51% -4.03% -0.83%
Conifer Holdings -27.29% -43.07% -12.67%

Summary

XL Group beats Conifer Holdings on 14 of the 16 factors compared between the two stocks.

About XL Group

XL Group plc is an insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises. The Company operates through two segments: Insurance and Reinsurance. The Company’s Insurance segment is organized into four product divisions: Global Casualty (Casualty); Global Energy Property, & Construction (EPC); Global Professional (Professional), and Global Specialty (Specialty). Its insurance operations provide insurance policies for corporate risks that may require large limits, use of a captive insurance company and the need for a program of locally issued policies. The Reinsurance segment provides casualty, property risk, property catastrophe, specialty, and other reinsurance lines on a global basis with business being written on both a proportional and non-proportional treaty basis, and also on a facultative basis.

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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