Critical Analysis: Presurance (PRHI) & Its Competitors

Presurance (NASDAQ:PRHI) is one of 316 publicly-traded companies in the “Insurance” industry, but how does it weigh in compared to its rivals? We will compare Presurance to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, risk and institutional ownership.

Institutional and Insider Ownership

34.9% of Presurance shares are held by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are held by institutional investors. 73.3% of Presurance shares are held by insiders. Comparatively, 13.8% of shares of all “Insurance” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Presurance and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Presurance	-49.56%	-89.12%	-7.90%
Presurance Competitors	10.29%	11.05%	4.11%

Volatility and Risk

Presurance has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Presurance’s rivals have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Presurance and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presurance	1	0	0	0	1.00
Presurance Competitors	3232	15321	16128	685	2.40

Presurance presently has a consensus price target of $7.00, indicating a potential upside of 3.93%. As a group, “Insurance” companies have a potential upside of 6.97%. Given Presurance’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Presurance has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Presurance and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Presurance	$43.30 million	-$18.44 million	-0.66
Presurance Competitors	$15.64 billion	$1.69 billion	34.03

Presurance’s rivals have higher revenue and earnings than Presurance. Presurance is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Presurance rivals beat Presurance on 11 of the 13 factors compared.

Presurance Company Profile

Conifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. It offers insurance coverage in specialty commercial and personal product lines. The company underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. It serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. The company also offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of approximately 4,600 independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Birmingham, Michigan.