Baldwin & Lyons Inc Class B (NASDAQ: IPCC) and Infinity Property and Casualty (NASDAQ:IPCC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Baldwin & Lyons Inc Class B and Infinity Property and Casualty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baldwin & Lyons Inc Class B 0 0 0 0 N/A
Infinity Property and Casualty 0 1 0 0 2.00

Infinity Property and Casualty has a consensus price target of $121.00, indicating a potential downside of 15.27%. Given Infinity Property and Casualty’s higher possible upside, analysts plainly believe Infinity Property and Casualty is more favorable than Baldwin & Lyons Inc Class B.

Profitability

This table compares Baldwin & Lyons Inc Class B and Infinity Property and Casualty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baldwin & Lyons Inc Class B 3.07% -0.83% -0.26%
Infinity Property and Casualty 3.58% 9.22% 2.65%

Earnings & Valuation

This table compares Baldwin & Lyons Inc Class B and Infinity Property and Casualty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baldwin & Lyons Inc Class B $371.23 million 0.95 $18.32 million N/A N/A
Infinity Property and Casualty $1.52 billion 1.03 $45.38 million $4.89 29.20

Infinity Property and Casualty has higher revenue and earnings than Baldwin & Lyons Inc Class B.

Dividends

Baldwin & Lyons Inc Class B pays an annual dividend of $1.12 per share and has a dividend yield of 4.8%. Infinity Property and Casualty pays an annual dividend of $2.32 per share and has a dividend yield of 1.6%. Infinity Property and Casualty pays out 47.4% of its earnings in the form of a dividend. Baldwin & Lyons Inc Class B has increased its dividend for 2 consecutive years and Infinity Property and Casualty has increased its dividend for 10 consecutive years.

Institutional and Insider Ownership

47.5% of Baldwin & Lyons Inc Class B shares are owned by institutional investors. Comparatively, 91.2% of Infinity Property and Casualty shares are owned by institutional investors. 38.1% of Baldwin & Lyons Inc Class B shares are owned by company insiders. Comparatively, 3.2% of Infinity Property and Casualty 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.

Volatility and Risk

Baldwin & Lyons Inc Class B has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Infinity Property and Casualty has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Summary

Infinity Property and Casualty beats Baldwin & Lyons Inc Class B on 9 of the 13 factors compared between the two stocks.

About Baldwin & Lyons Inc Class B

Baldwin & Lyons, Inc., through its subsidiaries, engages in marketing and underwriting property and casualty insurance products. The company offers a range of fleet transportation insurance products, including commercial motor vehicle liability, physical damage, and general liability insurance; workers compensation insurance; medical and indemnity insurance products; non-trucking motor vehicle liability insurance; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It also provides various additional services, such as risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. It serves trucking and public transportation fleets, as well as independent contractors in the trucking industry. The company primarily operates in the United States, Canada, Bermuda, and Puerto Rico. Baldwin & Lyons, Inc. was founded in 1930 and is headquartered in Carmel, Indiana.

About Infinity Property and Casualty

Infinity Property and Casualty Corporation, through its subsidiaries, provides personal auto insurance products in the United States. The company offers nonstandard, commercial, and classic collector auto insurance products. It also provides reinsurance products and services. The company distributes its products primarily through a network of independent agencies and brokers. Infinity Property and Casualty Corporation was founded in 2002 and is headquartered in Birmingham, Alabama.

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