Navigators Group (NASDAQ:NAVG) and Kingstone Companies (NASDAQ:KINS) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Earnings & Valuation

This table compares Navigators Group and Kingstone Companies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Navigators Group $1.31 billion 1.58 $40.49 million $1.16 60.12
Kingstone Companies $92.77 million 1.90 $9.98 million $0.94 17.44

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

Dividends

Navigators Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Navigators Group pays out 24.1% of its earnings in the form of a dividend. Kingstone Companies pays out 42.6% 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. Kingstone Companies has raised its dividend for 6 consecutive years. Kingstone Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

72.5% of Navigators Group shares are held by institutional investors. Comparatively, 50.6% of Kingstone Companies shares are held by institutional investors. 22.0% of Navigators Group shares are held by insiders. Comparatively, 10.3% of Kingstone Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Navigators Group has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Navigators Group and Kingstone Companies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navigators Group 0 3 0 0 2.00
Kingstone Companies 0 0 1 0 3.00

Navigators Group presently has a consensus price target of $65.00, indicating a potential downside of 6.80%. Kingstone Companies has a consensus price target of $20.00, indicating a potential upside of 22.03%. Given Kingstone Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Kingstone Companies is more favorable than Navigators Group.

Profitability

This table compares Navigators Group and Kingstone Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navigators Group 6.54% 7.27% 1.65%
Kingstone Companies 5.37% 6.76% 2.39%

Summary

Navigators Group beats Kingstone Companies on 9 of the 17 factors compared between the two stocks.

About Navigators Group

The Navigators Group, Inc., together with its subsidiaries, underwrites marine, property and casualty, and professional liability insurance products and services in the United States and internationally. The company operates through the U.S. Insurance, International Insurance, Global Reinsurance, and Corporate segments. It offers marine insurance products comprising cargo, craft, inland marine, and marine liability; fishing vessels, transport, war, hull, and other marine; and protection and indemnity, specie and fine art, craft, and energy liability insurance products. The company also provides commercial retail excess casualty and specialty wholesale excess casualty; general liability; contractors pollution liability, site pollution liability, and integrated casualty; auto, property, life sciences, surety, media, arts and entertainment, and other property and casualty; onshore and offshore energy, and other energy and engineering; and political violence and terrorism insurance products. In addition, it offers directors and officers; architects and engineers, accountants, miscellaneous professional liability, real estate errors and omissions (E&O), and other E&O; and warranties and indemnity insurance products. Further, the company offers accident and health, marine, property and casualty, professional, management liability, auto, general liability, agriculture, surety, and other reinsurance products. The Navigators Group, Inc. distributes its products through international, national, and regional retail and wholesale insurance brokers. The company was founded in 1982 and is headquartered in Stamford, Connecticut.

About Kingstone Companies

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.

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