ProSight Global (NYSE:PROS) & ProAssurance (NYSE:PRA) Head-To-Head Analysis

ProAssurance (NYSE:PRA) and ProSight Global (NYSE:PROS) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares ProAssurance and ProSight Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ProAssurance -3.75% 2.55% 0.68%
ProSight Global 4.78% 10.17% 1.91%

Earnings and Valuation

This table compares ProAssurance and ProSight Global’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ProAssurance $874.94 million 1.51 -$175.73 million ($0.52) -47.13
ProSight Global $878.06 million 0.64 $38.89 million $1.39 9.24

ProSight Global has higher revenue and earnings than ProAssurance. ProAssurance is trading at a lower price-to-earnings ratio than ProSight Global, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

83.4% of ProAssurance shares are held by institutional investors. Comparatively, 96.4% of ProSight Global shares are held by institutional investors. 1.3% of ProAssurance shares are held by insiders. Comparatively, 1.7% of ProSight Global 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.

Analyst Recommendations

This is a breakdown of current ratings for ProAssurance and ProSight Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ProAssurance 0 1 2 0 2.67
ProSight Global 0 1 0 0 2.00

ProAssurance presently has a consensus target price of $27.67, indicating a potential upside of 12.88%. ProSight Global has a consensus target price of $13.00, indicating a potential upside of 1.17%. Given ProAssurance’s stronger consensus rating and higher probable upside, equities analysts clearly believe ProAssurance is more favorable than ProSight Global.

Risk & Volatility

ProAssurance has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, ProSight Global has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Summary

ProSight Global beats ProAssurance on 10 of the 14 factors compared between the two stocks.

About ProAssurance

ProAssurance Corp. is a holding company. It operates through the following segments: Specialty Property and Casualty, Workers’ Compensation Insurance, Lloyd’s Syndicate, Segregated Portfolio Cell Reinsurance and Corporate. The Specialty Property and Casualty segment includes professional liability business and medical technology and life sciences business. The Workers’ Compensation Insurance segment includes the workers’ compensation business which the company provides for employers, groups and associations. The Lloyd’s Syndicate segment includes operating results from participation in Lloyd’s Syndicate 1729. The Segregated Portfolio Cell Reinsurance segment assumes workers’ compensation insurance, healthcare professional liability insurance or a combination of the two from Workers’ Compensation Insurance and Specialty Property & Casualty segments. The Corporate segment includes investing operations managed at the corporate level, non-premium revenues generated outside of insurance entities, and corporate expenses, including interest and U.S. income taxes. The company was founded in 1976 and is headquartered in Birmingham, AL.

About ProSight Global

ProSight Global, Inc., together with its subsidiaries, operates as an entrepreneurial specialty insurance company in the United States. It underwrites insurance coverages in the lines of commercial auto, general liability, workers' compensation, commercial multiple perils, and others. The company serves customers in construction, consumer service, marine and energy, media and entertainment, professional service, real estate, sports, and transportation industries. ProSight Global, Inc. was founded in 2009 and is headquartered in Morristown, New Jersey.

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