Head-To-Head Contrast: Alleghany (NYSE:Y) and Kingsway Financial Services (NYSE:KFS)

Alleghany (NYSE:Y) and Kingsway Financial Services (NYSE:KFS) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares Alleghany and Kingsway Financial Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alleghany $6.89 billion 1.44 $39.53 million $16.13 42.70
Kingsway Financial Services $52.64 million 1.19 -$26.68 million N/A N/A

Alleghany has higher revenue and earnings than Kingsway Financial Services.

Profitability

This table compares Alleghany and Kingsway Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alleghany 4.04% 2.53% 0.82%
Kingsway Financial Services -30.73% -57.59% -4.04%

Institutional & Insider Ownership

81.4% of Alleghany shares are owned by institutional investors. Comparatively, 28.0% of Kingsway Financial Services shares are owned by institutional investors. 3.4% of Alleghany shares are owned by company insiders. Comparatively, 49.0% of Kingsway Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Alleghany has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Kingsway Financial Services has a beta of -0.23, indicating that its stock price is 123% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Alleghany and Kingsway Financial Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alleghany 0 2 2 0 2.50
Kingsway Financial Services 0 0 0 0 N/A

Alleghany presently has a consensus price target of $700.00, indicating a potential upside of 1.62%. Given Alleghany’s higher probable upside, equities research analysts clearly believe Alleghany is more favorable than Kingsway Financial Services.

Summary

Alleghany beats Kingsway Financial Services on 10 of the 11 factors compared between the two stocks.

About Alleghany

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company operates in three segments: Reinsurance, Insurance, and Alleghany Capital. The Reinsurance segment offers fire, allied lines, auto physical damage, and homeowners multiple peril reinsurance products; and casualty and other reinsurance products, such as medical malpractice, ocean marine and aviation, accident and health, mortgage, surety, and credit reinsurance products, as well as directors' and officers', errors and omissions, general, and auto liability reinsurance. It distributes its products and services through brokers, as well as directly to insurance and reinsurance companies. The Insurance segment underwrites specialty insurance coverages in the property, as well as umbrella/excess, general, management, and professional liability lines; surety products comprising commercial and contract surety bonds; and workers' compensation insurance products. It distributes its products through independent wholesale insurance brokers, and retail and general insurance agents. The Alleghany Capital segment manufacturer/remanufacturer of specialty machine tools, as well as custom trailers and truck bodies for the moving and storage industry, and other markets; and operates as a toy, and entertainment and musical instrument company. It also provides technical engineering services for pharmaceutical and biotechnology industries; products and services for the funeral and cemetery industries, and precast concrete markets; and hotel management and development services, as well as operates as a structural steel fabricator and erector. The company also explores for and produces oil; and owns and manages improved and unimproved commercial land, and residential lots. As of December 31, 2018, it owned approximately 125 acres of property. Alleghany Corporation was founded in 1929 and is based in New York, New York.

About Kingsway Financial Services

Kingsway Financial Services Inc., through its subsidiaries, provides property and casualty insurance products in the United States. The company operates through three segments: Insurance Underwriting, Extended Warranty, and Leased Real Estate. The Insurance Underwriting segment offers various automobile insurance products, including liability insurance that covers claims against its insured's responsible for automobile accidents; accident benefit policies or personal injury protection policies that provide coverage for loss of income, medical, and rehabilitation expenses for insured persons who are injured in an automobile accident; and physical damage policies, which cover damages to an insured automobile arising from a collision with another object, as well as from other risks, such as fire or theft. The Extended Warranty segment markets and administers vehicle service agreements and related products for new and used automobiles. This segment also markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and refrigeration equipment; and equipment breakdown and maintenance support services to companies. The Leased Real Estate segment owns the Real Property, which is subject to a long-term triple net lease agreement. The company offers its products and services to credit unions, consumers, and businesses through a network of independent agencies. Kingsway Financial Services Inc. was founded in 1989 and is based in Itasca, Illinois.

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