Head-To-Head Analysis: American Financial Group (AFG) vs. Kingstone Companies (KINS)

American Financial Group (NYSE: AFG) and Kingstone Companies (NASDAQ:KINS) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Profitability

This table compares American Financial Group and Kingstone Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Financial Group 6.76% 12.37% 1.09%
Kingstone Companies 5.93% 6.67% 2.62%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for American Financial Group and Kingstone Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Financial Group 0 1 2 0 2.67
Kingstone Companies 0 0 1 0 3.00

American Financial Group currently has a consensus target price of $114.67, indicating a potential upside of 3.91%. Kingstone Companies has a consensus target price of $21.00, indicating a potential upside of 19.32%. Given Kingstone Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Kingstone Companies is more favorable than American Financial Group.

Dividends

American Financial Group pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. American Financial Group pays out 21.4% of its earnings in the form of a dividend. Kingstone Companies pays out 42.6% 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. American Financial Group has raised its dividend for 12 consecutive years.

Valuation & Earnings

This table compares American Financial Group and Kingstone Companies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Financial Group $6.87 billion 1.43 $475.00 million $6.55 16.85
Kingstone Companies $92.77 million 2.02 $9.98 million $0.94 18.72

American Financial Group has higher revenue and earnings than Kingstone Companies. American Financial Group is trading at a lower price-to-earnings ratio than Kingstone Companies, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

American Financial Group has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Insider & Institutional Ownership

62.6% of American Financial Group shares are owned by institutional investors. Comparatively, 50.8% of Kingstone Companies shares are owned by institutional investors. 14.9% of American Financial Group shares are owned by company insiders. Comparatively, 10.3% of Kingstone Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

American Financial Group beats Kingstone Companies on 10 of the 17 factors compared between the two stocks.

American Financial Group Company Profile

American Financial Group, Inc., through its subsidiaries, provides property and casualty insurance products in the United States. The company operates through Property and Casualty Insurance, Annuity, Run-Off Long-Term Care and Life, and Other segments. It offers property and transportation insurance products, such as physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products, and other property coverages; specialty casualty insurance, including primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, and specialty coverage in targeted markets and customized programs for small to mid-sized businesses; and specialty financial insurance products comprising risk management insurance programs for leasing and financing institutions, surety and fidelity products, and trade credit insurance. The company sells its property and casualty insurance products through independent insurance agents and brokers, as well as through employee agents. It also provides traditional fixed and fixed-indexed annuities to the retail, financial institutions, and education markets; and engages in the commercial real estate operations in Cincinnati, Whitefield, New Hampshire, Chesapeake Bay, Charleston, and Palm Beach. American Financial Group, Inc. was founded in 1872 and is headquartered in Cincinnati, Ohio.

Kingstone Companies Company Profile

Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to small businesses and individuals in New York. The company provides personal lines insurance products, such as homeowners and dwelling fire multi-peril, cooperative/condominium, renter, and personal umbrella policies. It also offers commercial liability policies comprising business owners policies, such as small business retail, service, and office risks without residential exposure to business owners; artisan's liability policies for small independent contractors; special multi-peril policies for business owners risks; and commercial umbrella policies. In addition, the company provides for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products. Kingstone Companies, Inc. sells its products through independent retail, and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is based in Kingston, New York.

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