Watford (NASDAQ:WTRE) and Kinsale Capital Group (NASDAQ:KNSL) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Watford and Kinsale Capital Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kinsale Capital Group||$222.11 million||8.70||$33.79 million||$1.79||50.71|
Insider and Institutional Ownership
1.2% of Watford shares are held by institutional investors. Comparatively, 83.0% of Kinsale Capital Group shares are held by institutional investors. 8.3% of Kinsale Capital Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Kinsale Capital Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. Watford does not pay a dividend. Kinsale Capital Group pays out 17.9% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for Watford and Kinsale Capital Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kinsale Capital Group||0||0||3||0||3.00|
Watford presently has a consensus target price of $29.25, indicating a potential upside of 26.73%. Kinsale Capital Group has a consensus target price of $92.00, indicating a potential upside of 1.36%. Given Watford’s higher probable upside, analysts plainly believe Watford is more favorable than Kinsale Capital Group.
This table compares Watford and Kinsale Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kinsale Capital Group||18.52%||16.77%||5.68%|
Kinsale Capital Group beats Watford on 9 of the 11 factors compared between the two stocks.
Watford Holdings Ltd., together with its subsidiaries, operates as a property, casualty, and mortgage insurance and reinsurance company worldwide. The company was founded in 2013 and is headquartered in Pembroke, Bermuda.
About Kinsale Capital Group
Kinsale Capital Group, Inc. provides as a casualty and property insurance products in the United States. Its commercial lines offerings include construction, small business, energy, excess and general casualty, life sciences, allied health, health care, commercial property, environmental, public entity, inland marine, and commercial insurance, as well as product, professional, and management liability insurance; and homeowners insurance. The company markets and sells insurance products through a network of independent insurance brokers. Kinsale Capital Group, Inc. was founded in 2009 and is headquartered in Richmond, Virginia.
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