Kemper (KMPR) vs. White Mountains Insurance Group (WTM) Head-To-Head Comparison

Kemper (NYSE: KMPR) and White Mountains Insurance Group (NYSE:WTM) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Valuation & Earnings

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This table compares Kemper and White Mountains Insurance Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kemper $2.72 billion 1.05 $120.90 million $1.64 33.96
White Mountains Insurance Group $373.80 million 8.11 $627.20 million ($8.62) -94.08

White Mountains Insurance Group has lower revenue, but higher earnings than Kemper. White Mountains Insurance Group is trading at a lower price-to-earnings ratio than Kemper, indicating that it is currently the more affordable of the two stocks.

Dividends

Kemper pays an annual dividend of $0.96 per share and has a dividend yield of 1.7%. White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. Kemper pays out 58.5% of its earnings in the form of a dividend. White Mountains Insurance Group pays out -11.6% 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.

Volatility and Risk

Kemper has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, White Mountains Insurance Group has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kemper and White Mountains Insurance Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper 0 0 1 1 3.50
White Mountains Insurance Group 0 0 0 0 N/A

Kemper presently has a consensus price target of $55.00, indicating a potential downside of 1.26%. Given Kemper’s higher possible upside, research analysts plainly believe Kemper is more favorable than White Mountains Insurance Group.

Insider and Institutional Ownership

58.5% of Kemper shares are held by institutional investors. Comparatively, 83.7% of White Mountains Insurance Group shares are held by institutional investors. 0.9% of Kemper shares are held by company insiders. Comparatively, 5.1% of White Mountains Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Kemper and White Mountains Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kemper 4.44% 4.14% 1.03%
White Mountains Insurance Group 94.29% 0.71% 0.49%

Summary

Kemper beats White Mountains Insurance Group on 10 of the 16 factors compared between the two stocks.

About Kemper

Kemper Corporation (Kemper) is a diversified insurance holding company. The Company, through its subsidiaries, provides automobile, homeowners, life, health and other insurance products to individuals and businesses. The Company operates through two segments: Property & Casualty Insurance, and Life & Health Insurance. The Property & Casualty Insurance segment’s products include personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.

About White Mountains Insurance Group

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and reinsurance services in the United States. The company operates through HG Global/BAM, MediaAlpha, and Other segments. The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, core governmental functions, and existing transportation facilities. The MediaAlpha segment develops transparent platforms for the buying and selling of insurance and other vertical-specific performance media, such as clicks, calls, and leads; This segment's exchange technology, machine learning, and analytical tools facilitates transparent and real-time transactions between advertisers and publishers. The Other segment provides investment management services; online price comparisons of auto insurance and non-insurance products; management services; and reinsures death and living benefit guarantees associated with variable annuities issued in Japan. White Mountains Insurance Group, Ltd. was founded in 1980 and is headquartered in Hamilton, Bermuda.

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