Willis Towers Watson Public Limited (NASDAQ: WLTW) and Kingstone Companies (NASDAQ:KINS) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitabiliy.

Institutional & Insider Ownership

92.1% of Willis Towers Watson Public Limited shares are held by institutional investors. Comparatively, 40.0% of Kingstone Companies shares are held by institutional investors. 6.7% of Willis Towers Watson Public Limited shares are held by company insiders. Comparatively, 10.3% of Kingstone Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Willis Towers Watson Public Limited and Kingstone Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Willis Towers Watson Public Limited 4.75% 10.63% 3.50%
Kingstone Companies 12.34% 15.00% 5.39%

Volatility and Risk

Willis Towers Watson Public Limited has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Dividends

Willis Towers Watson Public Limited pays an annual dividend of $2.12 per share and has a dividend yield of 1.4%. Kingstone Companies pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Willis Towers Watson Public Limited pays out 76.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kingstone Companies pays out 26.7% of its earnings in the form of a dividend. Kingstone Companies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for Willis Towers Watson Public Limited and Kingstone Companies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Willis Towers Watson Public Limited 2 1 10 0 2.62
Kingstone Companies 0 0 1 0 3.00

Willis Towers Watson Public Limited currently has a consensus price target of $152.09, suggesting a potential upside of 1.64%. Kingstone Companies has a consensus price target of $16.00, suggesting a potential upside of 0.95%. Given Willis Towers Watson Public Limited’s higher possible upside, analysts plainly believe Willis Towers Watson Public Limited is more favorable than Kingstone Companies.

Earnings & Valuation

This table compares Willis Towers Watson Public Limited and Kingstone Companies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Willis Towers Watson Public Limited $7.86 billion 2.57 $1.53 billion $2.76 54.22
Kingstone Companies $79.64 million 2.11 $16.03 million $1.20 13.21

Willis Towers Watson Public Limited has higher revenue and earnings than Kingstone Companies. Kingstone Companies is trading at a lower price-to-earnings ratio than Willis Towers Watson Public Limited, indicating that it is currently the more affordable of the two stocks.

Summary

Willis Towers Watson Public Limited beats Kingstone Companies on 9 of the 16 factors compared between the two stocks.

About Willis Towers Watson Public Limited

Willis Towers Watson Public Limited Company (Willis Towers Watson) is a holding company. The Company operates as a global advisory, broking and solutions company. It is engaged in offering risk management, insurance broking, consulting, technology and solutions, and private exchanges. The Company operates through eight segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (CWR); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. The Willis GB segment comprises four business units: Property and Casualty, Transport, Financial Lines and Retail Networks. The Willis Capital Wholesale and Reinsurance segment includes Willis Re; Willis Capital Markets & Advisory; Willis’ wholesale business, and Willis Portfolio Underwriting Services. The Willis North America segment provides risk management, insurance brokerage and related risk services.

About Kingstone Companies

Kingstone Companies, Inc. offers property and casualty insurance products to small businesses and individuals in New York State. The Company offers these products through its subsidiary, Kingstone Insurance Company (KICO). KICO is a licensed property and casualty insurance company. The Company operates through property and casualty insurances segment, which offers a range of property and casualty policies to its producers. The Company underwrites its business utilizing the CLUE industry claims database, insurance scoring reports, physical inspection of risks and other individual risk underwriting tools. It writes homeowners and dwelling fire business in New York City and Long Island. The Company’s product lines include personal lines, commercial liability, commercial automobile, livery physical damage and other. Its personal lines consist of homeowners, dwelling fire, renters, equipment breakdown and service line endorsements and personal umbrella policies.

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