International General Insurance (NASDAQ:IGIC) vs. Horace Mann Educators (NYSE:HMN) Financial Comparison

International General Insurance (NASDAQ:IGIC) and Horace Mann Educators (NYSE:HMN) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Dividends

International General Insurance pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Horace Mann Educators pays an annual dividend of $1.40 per share and has a dividend yield of 3.3%. International General Insurance pays out 7.2% of its earnings in the form of a dividend. Horace Mann Educators pays out 35.9% 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. International General Insurance has increased its dividend for 2 consecutive years and Horace Mann Educators has increased its dividend for 17 consecutive years. Horace Mann Educators is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares International General Insurance and Horace Mann Educators”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International General Insurance	$524.05 million	2.14	$135.15 million	$2.76	9.10
Horace Mann Educators	$1.60 billion	1.08	$162.10 million	$3.90	10.90

Horace Mann Educators has higher revenue and earnings than International General Insurance. International General Insurance is trading at a lower price-to-earnings ratio than Horace Mann Educators, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares International General Insurance and Horace Mann Educators’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International General Insurance	23.76%	18.36%	5.82%
Horace Mann Educators	9.53%	13.92%	1.31%

Risk and Volatility

International General Insurance has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for International General Insurance and Horace Mann Educators, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International General Insurance	0	0	3	0	3.00
Horace Mann Educators	0	1	2	1	3.00

International General Insurance currently has a consensus target price of $30.00, suggesting a potential upside of 19.43%. Horace Mann Educators has a consensus target price of $47.33, suggesting a potential upside of 11.37%. Given International General Insurance’s higher possible upside, equities research analysts clearly believe International General Insurance is more favorable than Horace Mann Educators.

Insider & Institutional Ownership

54.2% of International General Insurance shares are held by institutional investors. Comparatively, 99.3% of Horace Mann Educators shares are held by institutional investors. 20.1% of International General Insurance shares are held by insiders. Comparatively, 4.0% of Horace Mann Educators shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

International General Insurance beats Horace Mann Educators on 9 of the 17 factors compared between the two stocks.

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.

About Horace Mann Educators

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.