Amerisafe (NASDAQ: AMSF) and CNA Financial (NYSE:CNA) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Risk & Volatility
Amerisafe has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, CNA Financial has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.
This table compares Amerisafe and CNA Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Amerisafe||$375.21 million||2.84||$46.23 million||$3.08||17.95|
|CNA Financial||$9.54 billion||1.41||$899.00 million||$3.38||14.64|
CNA Financial has higher revenue and earnings than Amerisafe. CNA Financial is trading at a lower price-to-earnings ratio than Amerisafe, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
99.6% of CNA Financial shares are held by institutional investors. 2.2% of Amerisafe shares are held by company insiders. Comparatively, 0.2% of CNA Financial shares are held by company 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.
This table compares Amerisafe and CNA Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Amerisafe pays an annual dividend of $0.88 per share and has a dividend yield of 1.6%. CNA Financial pays an annual dividend of $0.85 per share and has a dividend yield of 1.7%. Amerisafe pays out 28.6% of its earnings in the form of a dividend. CNA Financial pays out 25.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CNA Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and target prices for Amerisafe and CNA Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Amerisafe currently has a consensus price target of $62.33, suggesting a potential upside of 12.72%. CNA Financial has a consensus price target of $50.50, suggesting a potential upside of 2.04%. Given Amerisafe’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Amerisafe is more favorable than CNA Financial.
Amerisafe beats CNA Financial on 9 of the 16 factors compared between the two stocks.
AMERISAFE, Inc., an insurance holding company, provides workers' compensation insurance in the United States. Its workers' compensation insurance policies provide benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. The company serves small to mid-sized employers involved in construction, trucking, logging and lumber, manufacturing, agriculture, maritime, oil and gas, and other industries through agencies. AMERISAFE, Inc. was incorporated in 1985 and is based in DeRidder, Louisiana.
About CNA Financial
CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company's property insurance products include property, marine, boiler, and machinery coverages; and casualty insurance products comprise workers compensation, general and product liability, commercial auto, and umbrella coverages. It also offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages to various professional firms, including architects, real estate agents, and accounting and law firms; surety and fidelity bonds, and warranty and alternative risks products; directors and officers, employment practices, fiduciary and fidelity coverages to small and mid-size firms, public and private firms, and not-for-profit organizations; and professional and general liability, as well as associated standard property and casualty coverages for healthcare industry. In addition, the company offers long-tail exposures, including commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures comprising property, commercial automobile physical damage, marine, surety, and warranty. CNA Financial Corporation markets its products through independent agents, brokers, and general underwriters to customers, including small, medium, and large businesses; insurance companies; associations; professionals; and other groups. It serves marine, property, financial services, healthcare, technology, oil and gas, construction, manufacturing, and life science industries. The company was founded in 1853 and is based in Chicago, Illinois.
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