Atlas Financial (AFH) and Maiden (MHLD) Head to Head Review

Atlas Financial (NASDAQ: AFH) and Maiden (NASDAQ:MHLD) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Earnings & Valuation

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This table compares Atlas Financial and Maiden’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlas Financial $221.98 million 0.57 $2.64 million ($3.62) -2.91
Maiden $2.92 billion 0.19 -$169.89 million ($2.16) -3.17

Atlas Financial has higher earnings, but lower revenue than Maiden. Maiden is trading at a lower price-to-earnings ratio than Atlas Financial, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Atlas Financial has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Maiden has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Insider and Institutional Ownership

80.5% of Atlas Financial shares are owned by institutional investors. Comparatively, 66.2% of Maiden shares are owned by institutional investors. 13.3% of Atlas Financial shares are owned by company insiders. Comparatively, 10.0% of Maiden shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Atlas Financial and Maiden’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Financial 0.92% -2.57% -0.78%
Maiden -5.82% -16.99% -2.42%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Atlas Financial and Maiden, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Financial 0 2 1 0 2.33
Maiden 0 3 1 0 2.25

Atlas Financial currently has a consensus price target of $20.33, indicating a potential upside of 92.73%. Maiden has a consensus price target of $10.40, indicating a potential upside of 51.82%. Given Atlas Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Atlas Financial is more favorable than Maiden.

Dividends

Maiden pays an annual dividend of $0.60 per share and has a dividend yield of 8.8%. Atlas Financial does not pay a dividend. Maiden pays out -27.8% of its earnings in the form of a dividend.

Summary

Atlas Financial beats Maiden on 10 of the 14 factors compared between the two stocks.

About Atlas Financial

Atlas Financial Holdings Inc formerly JJR VI Acquisition Corp is a Canada-based company. It is engaged in the business of providing commercial automobile insurance in the United States with a niche market orientation. The Company’s automobile insurance products provide coverage in three areas: liability, accident benefits and physical damage. Liability insurance provides coverage where the insured is responsible for an automobile accident, for the payment for injuries and property damage to third parties. Accident benefit policies or personal injury protection policies provide coverage for loss of income, medical and rehabilitation expenses for insured persons who are injured in an automobile accident, Physical damage coverages provide for the payment of damages to an insured automobile arising from a collision with another object or from other risks. In January 2013, the Company acquired Camelot Services Inc. and its insurance subsidiary, Gateway Insurance Company.

About Maiden

Maiden Holdings, Ltd., through its subsidiaries, provides reinsurance solutions to regional and specialty insurers in the United States, Europe, and internationally. It operates in two segments, Diversified Reinsurance and AmTrust Reinsurance. The Diversified Reinsurance segment offers property and casualty reinsurance, including the writing of treaties on a quota share or excess of loss basis; and facultative risks, which are marketed through third-party intermediaries and on a direct basis. The AmTrust Reinsurance segment provides small commercial business insurance, including workers' compensation, commercial package, and other property and casualty insurance products; and specialty risk and extended warranty coverage for consumer and commercial goods, as well as custom designed coverages, such as accidental damage plans and payment protection plans related to the sale of consumer and commercial goods. This segment also offers specialty program comprising package products, general liability, commercial auto liability, excess and surplus lines programs, and other specialty commercial property and casualty insurance to small and middle market companies. In addition, the company offers auto and credit life insurance products through its insurer partners to retail clients. Maiden Holdings, Ltd. was founded in 2007 and is headquartered in Pembroke, Bermuda.

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