Federated National (NASDAQ: FNHC) is one of 86 public companies in the “Property & Casualty Insurance” industry, but how does it compare to its peers? We will compare Federated National to related companies based on the strength of its profitability, valuation, analyst recommendations, dividends, earnings, institutional ownership and risk.

Institutional & Insider Ownership

62.3% of Federated National shares are held by institutional investors. Comparatively, 60.2% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 10.8% of Federated National shares are held by insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Federated National pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. Federated National pays out -45.7% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 23.0% of their earnings in the form of a dividend. Federated National is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and price targets for Federated National and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federated National 0 0 1 0 3.00
Federated National Competitors 633 2333 2202 48 2.32

Federated National presently has a consensus target price of $21.00, indicating a potential upside of 53.17%. As a group, “Property & Casualty Insurance” companies have a potential upside of 5.08%. Given Federated National’s stronger consensus rating and higher probable upside, research analysts plainly believe Federated National is more favorable than its peers.

Risk and Volatility

Federated National has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Federated National’s peers have a beta of 0.90, meaning that their average share price is 10% less volatile than the S&P 500.

Profitability

This table compares Federated National and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federated National -2.54% -4.03% -1.06%
Federated National Competitors 6.41% 1.75% 1.30%

Earnings & Valuation

This table compares Federated National and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Federated National $316.38 million -$190,000.00 -19.59
Federated National Competitors $11.51 billion $1.16 billion 221.55

Federated National’s peers have higher revenue and earnings than Federated National. Federated National is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

About Federated National

Federated National Holding Company (FNHC) is an insurance holding company that controls all steps in the insurance underwriting, distribution and claims processes through its subsidiaries and its contractual relationships with its independent agents and general agents. The Company is authorized to underwrite homeowners’ multi-peril (homeowners), commercial general liability, federal flood, personal auto and various other lines of insurance in Florida and various other states. The Company markets, distributes and services its own and third-party insurers’ products and its other services through a network of independent agents. The Company’s insurance lines of business include Homeowners’ Property and Casualty Insurance, Commercial General Liability, Personal Automobile and Flood. FNIC and MNIC underwrite homeowners’ insurance in Florida, and FNIC underwrites insurance in Alabama, Louisiana and South Carolina. Alabama and Louisiana.

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