Financial Comparison: Kingsway Financial Services (KWY) versus Its Competitors

Kingsway Financial Services (NYSE:KWY) is one of 334 publicly-traded companies in the “Financial Services” industry, but how does it contrast to its rivals? We will compare Kingsway Financial Services to similar businesses based on the strength of its dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Insider & Institutional Ownership

72.4% of Kingsway Financial Services shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Financial Services” companies are owned by institutional investors. 41.4% of Kingsway Financial Services shares are owned by company insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Kingsway Financial Services and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kingsway Financial Services	$134.97 million	-$10.73 million	-30.00
Kingsway Financial Services Competitors	$6.95 billion	$1.14 billion	8.62

Kingsway Financial Services’ rivals have higher revenue and earnings than Kingsway Financial Services. Kingsway Financial Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Kingsway Financial Services has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Kingsway Financial Services’ rivals have a beta of 2.55, meaning that their average stock price is 155% more volatile than the S&P 500.

Profitability

This table compares Kingsway Financial Services and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingsway Financial Services	-6.53%	-67.61%	-4.43%
Kingsway Financial Services Competitors	-259.04%	-39.95%	-4.73%

Analyst Ratings

This is a summary of current recommendations for Kingsway Financial Services and its rivals, 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
Kingsway Financial Services Competitors	1931	6947	11709	447	2.51

As a group, “Financial Services” companies have a potential downside of 5.40%. Given Kingsway Financial Services’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Kingsway Financial Services has less favorable growth aspects than its rivals.

Summary

Kingsway Financial Services rivals beat Kingsway Financial Services on 9 of the 13 factors compared.

Kingsway Financial Services Company Profile

Kingsway Financial Services is a holding company that acquires, owns and operates businesses in the insurance and non-insurance sectors. Its operations have included specialty insurance, including coverage for nonstandard automobile risks, as well as businesses providing professional and other services. The company has historical roots in the insurance industry and has evolved into a diversified operator with a focus on building and managing a portfolio of businesses. Its activities have primarily served markets in the United States, while its earlier insurance operations also had a presence in Canada.