Kingsway Financial Services (NYSE:KWY – Get Free Report) and Forward Industries (NASDAQ:FWDI – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares Kingsway Financial Services and Forward Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kingsway Financial Services | -6.69% | -61.62% | -4.45% |
| Forward Industries | -2,073.82% | -18.05% | -17.03% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Kingsway Financial Services and Forward Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kingsway Financial Services | 1 | 0 | 0 | 0 | 1.00 |
| Forward Industries | 1 | 1 | 2 | 0 | 2.25 |
Forward Industries has a consensus price target of $13.50, indicating a potential upside of 98.53%. Given Forward Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Forward Industries is more favorable than Kingsway Financial Services.
Risk & Volatility
Kingsway Financial Services has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Forward Industries has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
Insider & Institutional Ownership
72.4% of Kingsway Financial Services shares are owned by institutional investors. 41.4% of Kingsway Financial Services shares are owned by company insiders. Comparatively, 15.9% of Forward Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Kingsway Financial Services and Forward Industries”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kingsway Financial Services | $155.85 million | 1.84 | -$10.73 million | ($0.30) | -33.10 |
| Forward Industries | $53.12 million | 9.45 | -$166.97 million | $0.12 | 56.67 |
Kingsway Financial Services has higher revenue and earnings than Forward Industries. Kingsway Financial Services is trading at a lower price-to-earnings ratio than Forward Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Forward Industries beats Kingsway Financial Services on 8 of the 14 factors compared between the two stocks.
About Kingsway Financial Services
Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty business services, asset management, and real estate businesses. The company operates through three segments: Extended Warranty, Leased Real Estate, and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements and related products for new and used automobiles, motorcycles, and ATVs. This segment also sells new home warranty products, as well as offers uninsured warrant administration services to homebuilders and homeowners; markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to companies. The Leased Real Estate segment owns a parcel of real property consisting of approximately 192 acres located in the State of Texas. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting, and analysis and strategic finance services; technical accounting comprising initial public offerings, SEC reporting, and international consolidation services; human resources, workforce management, and compliance support services; and advisory services. The company offers its products and services through credit unions, dealers, homebuilders, and consumers. Kingsway Financial Services Inc. was incorporated in 1989 and is based in Itasca, Illinois.
About Forward Industries
Forward Industries, Inc., together with its subsidiaries, designs, markets, and distributes carry and protective solutions primarily for handheld electronic devices. The company operates in three segments: OEM Distribution, Retail Distribution, and Design. The OEM Distribution segment sources and distributes carrying cases and other accessories for medical monitoring and diagnostic kits; and various portable electronic and non-electronic products, such as sporting and recreational products, bar code scanners, GPS devices, tablets, and firearms. The Retail Distribution segment sources and sells smart-enabled furniture and a range of other products through agreements with various retailers, including in stores and online retailer websites. The Design segment provides hardware and software product design and engineering services. The company sells its products to original equipment manufacturers in the Asia-Pacific, the Americas, Europe, the Middle East, and Africa. Forward Industries, Inc. was incorporated in 1961 and is headquartered in Hauppauge, New York.
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