Comparing Kinsale Capital Group (NYSE:KNSL) & Citizens (NYSE:CIA)

Citizens (NYSE:CIA) and Kinsale Capital Group (NYSE:KNSL) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

13.7% of Citizens shares are held by institutional investors. Comparatively, 85.4% of Kinsale Capital Group shares are held by institutional investors. 2.2% of Citizens shares are held by company insiders. Comparatively, 5.6% of Kinsale Capital Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Citizens and Kinsale Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens	3.40%	3.31%	0.44%
Kinsale Capital Group	26.89%	25.73%	8.07%

Volatility and Risk

Citizens has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Kinsale Capital Group has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares Citizens and Kinsale Capital Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens	$255.62 million	0.96	$14.59 million	$0.16	27.47
Kinsale Capital Group	$1.87 billion	4.78	$503.61 million	$22.95	17.33

Kinsale Capital Group has higher revenue and earnings than Citizens. Kinsale Capital Group is trading at a lower price-to-earnings ratio than Citizens, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Citizens and Kinsale Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens	0	2	2	0	2.50
Kinsale Capital Group	2	8	1	0	1.91

Citizens currently has a consensus price target of $5.50, indicating a potential upside of 25.14%. Kinsale Capital Group has a consensus price target of $352.88, indicating a potential downside of 11.30%. Given Citizens’ stronger consensus rating and higher probable upside, analysts plainly believe Citizens is more favorable than Kinsale Capital Group.

Summary

Kinsale Capital Group beats Citizens on 10 of the 14 factors compared between the two stocks.

About Citizens

Citizens, Inc. (NYSE: CIA) is an insurance holding company focused primarily on life insurance products. Through its operating subsidiaries, the company provides coverage designed to address final expenses, mortgage protection, income replacement and other long-term financial needs. Its product offerings have included whole life, term life, universal life and other life insurance policies, as well as related insurance solutions. Citizens serves policyholders in the United States and selected international markets, including countries and territories in Latin America and the Caribbean.

About Kinsale Capital Group

Kinsale Capital Group, Inc. is a specialty insurance company focused on the excess and surplus lines market. Through its insurance subsidiaries, the company provides coverage for commercial risks that may be difficult to place in the standard insurance market. Its products include commercial property and casualty insurance, along with specialty coverages such as professional liability, excess liability, inland marine, and environmental insurance. Kinsale serves businesses and insurance brokers across the United States.