Investors Title (ITIC) and Argo Group International (AGII) Financial Analysis

Investors Title (NASDAQ: ITIC) and Argo Group International (NASDAQ:AGII) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Investors Title and Argo Group International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Investors Title 15.90% 12.06% 8.39%
Argo Group International 2.84% -0.80% -0.17%

Insider & Institutional Ownership

42.1% of Investors Title shares are held by institutional investors. Comparatively, 79.6% of Argo Group International shares are held by institutional investors. 27.5% of Investors Title shares are held by company insiders. Comparatively, 4.9% of Argo Group International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Investors Title and Argo Group International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Investors Title $161.65 million 2.29 $25.70 million N/A N/A
Argo Group International $1.77 billion 1.12 $50.30 million ($0.42) -140.48

Argo Group International has higher revenue and earnings than Investors Title.

Volatility and Risk

Investors Title has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Argo Group International has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Dividends

Investors Title pays an annual dividend of $1.60 per share and has a dividend yield of 0.8%. Argo Group International pays an annual dividend of $1.08 per share and has a dividend yield of 1.8%. Argo Group International pays out -257.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for Investors Title and Argo Group International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Investors Title 0 0 0 0 N/A
Argo Group International 0 0 1 0 3.00

Argo Group International has a consensus price target of $62.00, indicating a potential upside of 5.08%. Given Argo Group International’s higher possible upside, analysts clearly believe Argo Group International is more favorable than Investors Title.

Summary

Argo Group International beats Investors Title on 7 of the 13 factors compared between the two stocks.

About Investors Title

Investors Title Company is an insurance holding company. The Company, through its subsidiaries, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC), is engaged in issuance of residential and commercial title insurance, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC). The Company also provides tax-deferred real property exchange services through its subsidiaries, Investors Title Exchange Corporation (ITEC) and Investors Title Accommodation Corporation (ITAC); investment management and trust services to individuals, trusts and other entities through its subsidiary, Investors Trust Company (Investors Trust), and management services to title insurance agencies through its subsidiary, Investors Title Management Services (ITMS). In addition, the Company operates in the issuance of residential and commercial title insurance through ITIC and NITIC segment.

About Argo Group International

Argo Group International Holdings, Ltd. is an underwriter of specialty insurance and reinsurance products in the property and casualty market. The Company operates through four segments: Excess and Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200. Excess and Surplus Lines segment carriers focus on risks that the standard (admitted) market is unwilling or unable to underwrite. The Excess and Surplus Lines segment consists of two operating platforms: Colony Specialty and Argo Pro. Commercial Specialty segment provides property, casualty and surety coverages designed to meet the insurance needs of businesses within certain markets. International Specialty segment underwrites insurance and reinsurance risks. It operate as Argo Re, the Casualty and Professional Lines unit of Argo Insurance in Bermuda, and Argo Seguros Brazil, S.A. in Brazil. The Syndicate 1200 segment underwrites around the world property, specialty and non-United States liability insurance.

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