Financial Review: NI (NODK) vs. Loews (L)

NI (NYSE: L) and Loews (NYSE:L) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Dividends

Loews pays an annual dividend of $0.25 per share and has a dividend yield of 0.5%. NI does not pay a dividend. Loews pays out 8.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

19.5% of NI shares are held by institutional investors. Comparatively, 62.4% of Loews shares are held by institutional investors. 0.4% of NI shares are held by insiders. Comparatively, 12.3% of Loews shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares NI and Loews’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NI $189.14 million 1.98 $15.99 million N/A N/A
Loews $13.74 billion 1.17 $1.16 billion $2.86 17.83

Loews has higher revenue and earnings than NI.

Risk & Volatility

NI has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, Loews has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares NI and Loews’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NI 8.60% 6.74% 4.23%
Loews 8.15% 4.11% 1.21%

Analyst Ratings

This is a summary of recent ratings for NI and Loews, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NI 0 0 0 0 N/A
Loews 0 2 1 0 2.33

Loews has a consensus price target of $53.57, indicating a potential upside of 5.07%. Given Loews’ higher possible upside, analysts clearly believe Loews is more favorable than NI.

Summary

Loews beats NI on 8 of the 14 factors compared between the two stocks.

NI Company Profile

NI Holdings, Inc. underwrites property and casualty insurance products in North Dakota, South Dakota, Nebraska, Minnesota, Nevada, and Arizona. Its products include multi-peril crop, crop hail, private passenger automobile, farm owners, homeowners, and commercial property and liability insurance policies. The company distributes its insurance products through independent producers and agents. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. is a subsidiary of Nodak Mutual Group, Inc.

Loews Company Profile

Loews Corporation, through its subsidiaries, provides commercial property and casualty insurance in the United States, Canada, the United Kingdom, Continental Europe, and Singapore. The company offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages; commercial surety and fidelity bonds; and warranty and alternative risk services primarily for vehicles and cell phones. Its commercial property insurance products include standard and excess property, marine, and boiler and machinery coverages; and casualty insurance products comprise workers' compensation, general and product liability, commercial auto, and umbrella coverages. The company also provides loss-sensitive insurance programs; and risk management, information, and claims administration services. It markets its insurance products and services primarily through independent agents, brokers, and managing general underwriters. In addition, the company owns and operates 17 offshore drilling rigs consisting of 4 drillships; and 7 ultra-deepwater, 4 deepwater, and 2 mid-water semisubmersible rigs. Further, it is involved in the transportation and storage of natural gas and natural gas liquids (NGLs). It owns and operates natural gas pipelines covering approximately 13,880 miles of interconnected pipelines; approximately 455 miles of NGL pipelines in Louisiana and Texas; and underground storage fields with aggregate working gas capacity of approximately 205.0 billion cubic feet of natural gas. Additionally, it operates 24 hotels in the United States and Canada. The company was founded in 1954 and is headquartered in New York, New York.

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