Contrasting F&G Annuities & Life (NYSE:FG) and Kinsale Capital Group (NYSE:KNSL)

Kinsale Capital Group (NYSE:KNSL) and F&G Annuities & Life (NYSE:FG) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Volatility & Risk

Kinsale Capital Group has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, F&G Annuities & Life has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Dividends

Kinsale Capital Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.3%. F&G Annuities & Life pays an annual dividend of $1.00 per share and has a dividend yield of 5.3%. Kinsale Capital Group pays out 4.1% of its earnings in the form of a dividend. F&G Annuities & Life pays out 34.1% 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. Kinsale Capital Group has raised its dividend for 2 consecutive years and F&G Annuities & Life has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Kinsale Capital Group and F&G Annuities & Life”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinsale Capital Group	$1.87 billion	4.15	$503.61 million	$24.68	13.82
F&G Annuities & Life	$5.73 billion	0.43	$265.00 million	$2.93	6.47

Kinsale Capital Group has higher earnings, but lower revenue than F&G Annuities & Life. F&G Annuities & Life is trading at a lower price-to-earnings ratio than Kinsale Capital Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kinsale Capital Group and F&G Annuities & Life’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinsale Capital Group	28.49%	25.54%	8.15%
F&G Annuities & Life	6.89%	10.28%	0.50%

Insider & Institutional Ownership

85.4% of Kinsale Capital Group shares are held by institutional investors. Comparatively, 95.9% of F&G Annuities & Life shares are held by institutional investors. 5.6% of Kinsale Capital Group shares are held by insiders. Comparatively, 2.5% of F&G Annuities & Life shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kinsale Capital Group and F&G Annuities & Life, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinsale Capital Group	2	7	1	0	1.90
F&G Annuities & Life	2	2	0	0	1.50

Kinsale Capital Group currently has a consensus price target of $357.67, suggesting a potential upside of 4.84%. F&G Annuities & Life has a consensus price target of $24.00, suggesting a potential upside of 26.64%. Given F&G Annuities & Life’s higher possible upside, analysts plainly believe F&G Annuities & Life is more favorable than Kinsale Capital Group.

Summary

Kinsale Capital Group beats F&G Annuities & Life on 11 of the 16 factors compared between the two stocks.

About Kinsale Capital Group

Kinsale Capital Group, Inc., a specialty insurance company, engages in the provision of property and casualty insurance products in the United States. The company’s commercial lines offerings include commercial property, small business casualty and property, excess and general casualty, construction, allied health, life sciences, entertainment, energy, environmental, excess professional, health care, public entity, commercial auto, inland marine, aviation, ocean marine, product recall, and railroad, as well as product, professional, and management liability insurance. It markets and sells its insurance products in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands primarily through a network of independent insurance brokers. The company was founded in 2009 and is headquartered in Richmond, Virginia.

About F&G Annuities & Life

F&G Annuities & Life, Inc. engages in the provision of fixed annuity and life insurance products. It specializes in life insurance, annuities, retirement planning and wealth transfer. The company was founded in 1959 and is headquartered in Des Moines, IA.