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

Valuation & Earnings

This table compares Assurant and Hallmark Financial Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Assurant $10.09 billion 0.70 $382.60 million $8.55 13.77
Hallmark Financial Services $486.37 million 0.11 -$630,000.00 ($0.93) -3.22

Assurant has higher revenue and earnings than Hallmark Financial Services. Hallmark Financial Services is trading at a lower price-to-earnings ratio than Assurant, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

94.7% of Assurant shares are owned by institutional investors. Comparatively, 43.0% of Hallmark Financial Services shares are owned by institutional investors. 0.6% of Assurant shares are owned by insiders. Comparatively, 28.6% of Hallmark Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Assurant and Hallmark Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Assurant 3.95% 10.23% 1.32%
Hallmark Financial Services -17.94% -8.63% -1.41%

Risk and Volatility

Assurant has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Hallmark Financial Services has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Assurant and Hallmark Financial Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assurant 0 0 3 0 3.00
Hallmark Financial Services 0 1 1 0 2.50

Assurant presently has a consensus price target of $148.67, suggesting a potential upside of 26.28%. Hallmark Financial Services has a consensus price target of $7.00, suggesting a potential upside of 134.11%. Given Hallmark Financial Services’ higher probable upside, analysts clearly believe Hallmark Financial Services is more favorable than Assurant.

Summary

Assurant beats Hallmark Financial Services on 11 of the 14 factors compared between the two stocks.

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; and renters insurance and related products, as well as voluntary manufactured housing insurance, homeowners insurance, and other products. 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 and related 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.

About Hallmark Financial Services

Hallmark Financial Services, Inc., through its subsidiaries, underwrites, markets, distributes, and services property/casualty insurance products to businesses and individuals in the United States. The company operates in the Specialty Commercial, Standard Commercial, and Personal segments. The Specialty Commercial segment markets, underwrites, finances, and services commercial lines of insurance products, including commercial automobile, general liability, commercial property, commercial excess liability, and commercial umbrella insurance products. This segment also offers general aviation property/casualty insurance, such as aircraft insurance, airport liability insurance, and satellite launch and in-orbit coverage insurance products, as well as provides medical professional liability insurance products. The Standard Commercial segment offers standard commercial lines of insurance products primarily in the non-urban areas in the southwest and northwest regions of the United States. Its products include commercial automobile, general liability, umbrella, commercial property, commercial multi-peril, business owner's, and occupational accident insurance products. The Personal segment provides personal automobile and renters insurance products. The company markets its insurance products through independent general agents, retail agents, and specialty brokers. Hallmark Financial Services, Inc. was founded in 1987 and is headquartered in Fort Worth, Texas.

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