Protective Insurance (NASDAQ:PTVCA) and Conifer (NASDAQ:CNFR) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Protective Insurance and Conifer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Protective Insurance 0 0 0 0 N/A
Conifer 0 1 1 0 2.50

Conifer has a consensus price target of $6.50, suggesting a potential upside of 68.83%. Given Conifer’s higher possible upside, analysts plainly believe Conifer is more favorable than Protective Insurance.

Earnings and Valuation

This table compares Protective Insurance and Conifer’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Protective Insurance $439.17 million 0.62 -$34.08 million N/A N/A
Conifer $98.91 million 0.32 -$9.23 million ($0.44) -8.75

Conifer has lower revenue, but higher earnings than Protective Insurance.

Risk & Volatility

Protective Insurance has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Conifer has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Dividends

Protective Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Conifer does not pay a dividend.

Institutional & Insider Ownership

3.8% of Protective Insurance shares are held by institutional investors. Comparatively, 19.3% of Conifer shares are held by institutional investors. 28.2% of Protective Insurance shares are held by company insiders. Comparatively, 47.5% of Conifer shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Protective Insurance and Conifer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Protective Insurance -6.98% -5.19% -1.34%
Conifer -10.28% -21.47% -4.19%

About Protective Insurance

Protective Insurance Corporation, 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. Protective Insurance Corporation was founded in 1930 and is headquartered in Carmel, Indiana.

About Conifer

Conifer Holdings, Inc., an insurance holding company, offers insurance coverage in specialty commercial and personal product lines. The company underwrites various specialty insurance products, including property, general liability, commercial multi-peril, liquor liability, and automobile policies. It serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, such as companies that provide security guard services, security alarm products and services, and private investigative services. The company also offers specialty homeowners insurance products, such as dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wind-exposed catastrophe coverage comprising hurricane and wind coverage to under-served homeowners in Hawaii, Texas, and Florida. It markets and sells its insurance products through a network of approximately 7,000 independent agents in 50 states in the United States. Conifer Holdings, Inc. was founded in 2009 and is headquartered in Birmingham, Michigan.

Receive News & Ratings for Protective Insurance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Protective Insurance and related companies with MarketBeat.com's FREE daily email newsletter.