Allied World Assurance (OTCMKTS:AWHHF) and Kingsway Financial Services (NYSE:KWY) Head-To-Head Analysis

Allied World Assurance (OTCMKTS:AWHHF) and Kingsway Financial Services (NYSE:KWY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for Allied World Assurance and Kingsway Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied World Assurance	0	0	0	0	0.00
Kingsway Financial Services	1	0	0	0	1.00

Given Allied World Assurance’s higher probable upside, equities research analysts plainly believe Allied World Assurance is more favorable than Kingsway Financial Services.

Valuation & Earnings

This table compares Allied World Assurance and Kingsway Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied World Assurance	N/A	N/A	N/A	N/A	N/A
Kingsway Financial Services	$134.97 million	2.18	-$10.73 million	($0.40)	-25.38

Allied World Assurance has higher earnings, but lower revenue than Kingsway Financial Services.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allied World Assurance	N/A	N/A	N/A
Kingsway Financial Services	-8.83%	-72.50%	-5.67%

Institutional & Insider Ownership

86.5% of Allied World Assurance shares are owned by institutional investors. Comparatively, 72.4% of Kingsway Financial Services shares are owned by institutional investors. 3.2% of Allied World Assurance shares are owned by insiders. Comparatively, 41.4% of Kingsway Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Allied World Assurance beats Kingsway Financial Services on 5 of the 8 factors compared between the two stocks.

About Allied World Assurance

Allied World Assurance Company Holdings Ltd is a Germany-based holding company. It provides property, casualty and specialty insurance and reinsurance solutions to clients around the world. The Company operates in three segments: North American Insurance, Global Markets Insurance and Reinsurance. The North American Insurance segment consists of the Company’s direct insurance operations in the United States, Bermuda and Canada. The Global Markets Insurance segment includes all of the Company’s direct insurance operations outside of North America. The Company’s reinsurance segment includes the reinsurance of property, general casualty, professional liability, specialty lines and property catastrophe coverage’s written by other reinsurance companies. The Company leases space in Australia, Bermuda, Canada, Hong Kong, Ireland, Labuan, Singapore, the United Kingdom and the United States for the operation of its North American Insurance, Global Markets Insurance and Reinsurance segments.

About Kingsway Financial Services

Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty business services, asset management, and real estate businesses. The company operates through three segments: Extended Warranty, Leased Real Estate, and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements and related products for new and used automobiles, motorcycles, and ATVs. This segment also sells new home warranty products, as well as offers uninsured warrant administration services to homebuilders and homeowners; markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to companies. The Leased Real Estate segment owns a parcel of real property consisting of approximately 192 acres located in the State of Texas. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting, and analysis and strategic finance services; technical accounting comprising initial public offerings, SEC reporting, and international consolidation services; human resources, workforce management, and compliance support services; and advisory services. The company offers its products and services through credit unions, dealers, homebuilders, and consumers. Kingsway Financial Services Inc. was incorporated in 1989 and is based in Itasca, Illinois.