Critical Analysis: Kemper (NYSE:KMPR) and World Access (OTCMKTS:WAXS)

World Access (OTCMKTS:WAXS) and Kemper (NYSE:KMPR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Valuation & Earnings

This table compares World Access and Kemper”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Access	N/A	N/A	N/A	N/A	N/A
Kemper	$4.79 billion	0.38	$143.30 million	$2.19	13.98

Kemper has higher revenue and earnings than World Access.

Insider and Institutional Ownership

86.2% of Kemper shares are held by institutional investors. 16.4% of World Access shares are held by insiders. Comparatively, 6.2% of Kemper shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares World Access and Kemper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
World Access	N/A	N/A	N/A
Kemper	2.99%	8.02%	1.80%

Analyst Ratings

This is a summary of current recommendations and price targets for World Access and Kemper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Access	0	0	0	0	0.00
Kemper	4	3	1	0	1.63

Kemper has a consensus target price of $56.50, indicating a potential upside of 84.51%. Given Kemper’s stronger consensus rating and higher possible upside, analysts clearly believe Kemper is more favorable than World Access.

Summary

Kemper beats World Access on 8 of the 9 factors compared between the two stocks.

About World Access

World Access, Inc. operates as a global services company providing solutions in customer care to organizations in the travel, financial, health care, and call center industries. It consists of three full service companies and three specialized services companies. World Access Service Corporation serves companies located in the US and companies that have travelers or employees visiting North America. World Access Canada serves companies located in Canada; and World Access Asia serves companies located in eastern Asia, including Japan. World Access Europe provides members of World Access with logistical and medical support throughout the region. Other companies include World Access Provider Network Services; and World Access Transport Services that manages and coordinates all medical evacuation and repatriation activities for World Access. The company is based in Atlanta, Georgia. In April 2001, the company filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court on behalf of itself and certain of its U.S. subsidiaries.

About Kemper

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance. It provides preferred and specialty automobile, homeowners, renters, fire, umbrella, general liability, and various other property and casualty insurance to individuals, as well as commercial automobile insurance to businesses. The company also offers life insurance, including permanent and term insurance; and supplemental accident and health insurance products, such as Medicare supplement insurance, fixed hospital indemnity, home health care, specified disease, and accident-only plans to individuals in rural, suburban, and urban areas. It distributes its products through independent agents and brokers. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was incorporated in 1990 and is headquartered in Chicago, Illinois.