Citizens Financial (OTCMKTS:CFIN) and Assurant (NYSE:AIZ) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Risk & Volatility

Citizens Financial has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Assurant has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Citizens Financial and Assurant, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citizens Financial 0 0 0 0 N/A
Assurant 0 0 4 0 3.00

Assurant has a consensus price target of $128.75, indicating a potential upside of 34.32%. Given Assurant’s higher probable upside, analysts clearly believe Assurant is more favorable than Citizens Financial.

Profitability

This table compares Citizens Financial and Assurant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citizens Financial N/A N/A N/A
Assurant 6.37% 5.62% 0.74%

Dividends

Assurant pays an annual dividend of $2.24 per share and has a dividend yield of 2.3%. Citizens Financial does not pay a dividend. Assurant pays out 56.3% of its earnings in the form of a dividend. Assurant has raised its dividend for 14 consecutive years.

Institutional and Insider Ownership

94.1% of Assurant shares are held by institutional investors. 59.4% of Citizens Financial shares are held by insiders. Comparatively, 0.9% of Assurant shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Citizens Financial and Assurant’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens Financial N/A N/A N/A N/A N/A
Assurant $6.42 billion 0.93 $519.60 million $3.98 24.08

Assurant has higher revenue and earnings than Citizens Financial.

Summary

Assurant beats Citizens Financial on 10 of the 12 factors compared between the two stocks.

About Citizens Financial

Citizens Financial Corporation, through its subsidiary, provides ancillary health insurance products. It also offers administrative services to medical professionals involved in providing on-site treatment to patients in community settings. The company offers group ancillary insurance products, including group dental, group vision, and group life insurance; and individual ancillary insurance products, such as individual dental and individual vision insurance to the senior market. Citizens Financial Corporation was incorporated in 1990 and is based in Louisville, Kentucky.

About Assurant

Assurant, Inc., through its subsidiaries, provides risk management solutions for housing and lifestyle markets in North America, Latin America, Europe, and the Asia Pacific. The company operates through three segments: Global Housing, Global Lifestyle, and Global Preneed. Its Global Housing segment provides lender-placed homeowners, manufactured housing, and flood insurance; renters insurance and related products; and mortgage solutions comprising property inspection and preservation, valuation and title, and other property risk management services. The Global Lifestyle segment offers mobile device protection products and related services, and extended service contracts for consumer electronics and appliances, as well as assistance services; vehicle protection services; and credit and other insurance services. Its Global Preneed segment provides pre-funded funeral insurance and annuity products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in New York, New York.

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