Affirmative Insurance (OTCMKTS:AFFM) and Kingsway Financial Services (NYSE:KWY) Head to Head Analysis

Affirmative Insurance (OTCMKTS:AFFM) and Kingsway Financial Services (NYSE:KWY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Earnings & Valuation

This table compares Affirmative Insurance and Kingsway Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affirmative Insurance	N/A	N/A	N/A	N/A	N/A
Kingsway Financial Services	$134.97 million	2.24	-$10.73 million	($0.40)	-26.08

Affirmative Insurance has higher earnings, but lower revenue than Kingsway Financial Services.

Institutional and Insider Ownership

72.4% of Kingsway Financial Services shares are held by institutional investors. 41.4% of Kingsway Financial Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Affirmative Insurance	N/A	N/A	N/A
Kingsway Financial Services	-8.83%	-72.50%	-5.67%

Analyst Ratings

This is a breakdown of current ratings for Affirmative Insurance and Kingsway Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affirmative Insurance	0	0	0	0	0.00
Kingsway Financial Services	1	0	0	0	1.00

Given Affirmative Insurance’s higher possible upside, analysts plainly believe Affirmative Insurance is more favorable than Kingsway Financial Services.

About Affirmative Insurance

Affirmative Insurance Holdings, Inc. is a provider of non-standard personal automobile insurance policies for individual consumers in targeted geographic markets. As of March 31, 2015, the Company’s subsidiaries included insurance companies licensed to write insurance policies in 39 states, two underwriting agencies and a service company. As of March 31, 2015, the Company operated in seven states (Louisiana, Texas, California, Alabama, Illinois, Indiana and Missouri) and distributed its insurance policies through approximately 5,000 independent agents or brokers, including an unaffiliated underwriting agency that distributed its policies in the state of California. The Company also distributes and services non-standard insurance policies underwritten by a Texas county mutual insurance company.

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.