International General Insurance (NASDAQ:IGIC) vs. Old Republic International (NYSE:ORI) Head-To-Head Survey

International General Insurance (NASDAQ:IGIC) and Old Republic International (NYSE:ORI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares International General Insurance and Old Republic International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International General Insurance	24.61%	16.98%	5.45%
Old Republic International	10.83%	15.71%	3.23%

Institutional & Insider Ownership

54.2% of International General Insurance shares are owned by institutional investors. Comparatively, 70.9% of Old Republic International shares are owned by institutional investors. 20.1% of International General Insurance shares are owned by insiders. Comparatively, 1.3% of Old Republic International shares are owned 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.

Risk and Volatility

International General Insurance has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Old Republic International has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Dividends

International General Insurance pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Old Republic International pays an annual dividend of $1.26 per share and has a dividend yield of 3.2%. International General Insurance pays out 7.0% of its earnings in the form of a dividend. Old Republic International pays out 33.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. International General Insurance has increased its dividend for 2 consecutive years and Old Republic International has increased its dividend for 45 consecutive years. Old Republic International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for International General Insurance and Old Republic International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International General Insurance	0	0	2	0	3.00
Old Republic International	1	1	1	1	2.50

International General Insurance presently has a consensus price target of $28.00, suggesting a potential upside of 10.24%. Old Republic International has a consensus price target of $42.00, suggesting a potential upside of 6.85%. Given International General Insurance’s stronger consensus rating and higher probable upside, equities research analysts clearly believe International General Insurance is more favorable than Old Republic International.

Earnings and Valuation

This table compares International General Insurance and Old Republic International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International General Insurance	$516.90 million	2.11	$127.15 million	$2.87	8.85
Old Republic International	$9.14 billion	1.05	$935.40 million	$3.73	10.54

Old Republic International has higher revenue and earnings than International General Insurance. International General Insurance is trading at a lower price-to-earnings ratio than Old Republic International, indicating that it is currently the more affordable of the two stocks.

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.

About Old Republic International

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety. This segment provides its insurance products to businesses, state and local government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. Old Republic International Corporation was founded in 1923 and is based in Chicago, Illinois.