Financial Comparison: Kingstone Companies (KINS) versus AXIS Capital (AXS)

Kingstone Companies (NASDAQ: KINS) and AXIS Capital (NYSE:AXS) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Kingstone Companies has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, AXIS Capital has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Kingstone Companies and AXIS Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kingstone Companies 0 0 1 0 3.00
AXIS Capital 0 7 2 0 2.22

Kingstone Companies presently has a consensus target price of $21.00, indicating a potential upside of 17.98%. AXIS Capital has a consensus target price of $60.89, indicating a potential upside of 4.28%. Given Kingstone Companies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Kingstone Companies is more favorable than AXIS Capital.

Insider & Institutional Ownership

50.5% of Kingstone Companies shares are owned by institutional investors. Comparatively, 91.7% of AXIS Capital shares are owned by institutional investors. 10.3% of Kingstone Companies shares are owned by company insiders. Comparatively, 2.0% of AXIS Capital shares are owned 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.

Dividends

Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. AXIS Capital pays an annual dividend of $1.56 per share and has a dividend yield of 2.7%. Kingstone Companies pays out 42.6% of its earnings in the form of a dividend. AXIS Capital pays out -49.5% 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. AXIS Capital has increased its dividend for 11 consecutive years. AXIS Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Kingstone Companies and AXIS Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kingstone Companies $92.77 million 2.05 $9.98 million $0.94 18.94
AXIS Capital $4.59 billion 1.06 -$368.96 million ($3.15) -18.54

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

Profitability

This table compares Kingstone Companies and AXIS Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kingstone Companies 5.93% 6.67% 2.62%
AXIS Capital -6.52% -3.42% -0.69%

Summary

Kingstone Companies beats AXIS Capital on 11 of the 17 factors compared between the two stocks.

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.

AXIS Capital Company Profile

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers property insurance for commercial buildings, residential premises, construction projects, and onshore energy installations; marine insurance covering offshore energy, cargo, liability, recreational marine, fine art, specie, hull, and war; and terrorism, aviation, credit and political risk, and liability insurance. It also provides professional lines insurance that cover directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, and not-for-profit organizations. In addition, this segment offers accidental death, travel, and specialty health products for employer and affinity groups, as well as accident and health reinsurance for catastrophic or per life events through wholesale and retail brokers, managing general agents, and underwriters. The Reinsurance segment offers reinsurance to insurance companies, including catastrophe; property reinsurance covering property damage and related losses resulting from natural and man-made perils; professional lines; and credit and surety. This segment also provides agriculture reinsurance; coverage for various types of construction risks and risks related to erection, testing, and commissioning of machinery and plants during the construction stage; marine, aviation, and personal accident reinsurance; and derivative based risk management products. The company was founded in 2001 and is headquartered in Pembroke, Bermuda.

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