Head-To-Head Contrast: Primerica (NYSE:PRI) & Kemper (NYSE:KMPR)

Kemper (NYSE:KMPR) and Primerica (NYSE:PRI) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares Kemper and Primerica”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kemper	$4.79 billion	0.42	$143.30 million	($7.18)	-4.78
Primerica	$3.29 billion	2.70	$751.23 million	$25.31	11.57

Primerica has lower revenue, but higher earnings than Kemper. Kemper is trading at a lower price-to-earnings ratio than Primerica, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Kemper has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Primerica has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Dividends

Kemper pays an annual dividend of $1.28 per share and has a dividend yield of 3.7%. Primerica pays an annual dividend of $4.80 per share and has a dividend yield of 1.6%. Kemper pays out -17.8% of its earnings in the form of a dividend. Primerica pays out 19.0% 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. Kemper has increased its dividend for 1 consecutive years and Primerica has increased its dividend for 2 consecutive years. Kemper is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kemper and Primerica, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kemper	3	3	2	0	1.88
Primerica	0	5	2	0	2.29

Kemper presently has a consensus target price of $37.67, suggesting a potential upside of 9.76%. Primerica has a consensus target price of $318.80, suggesting a potential upside of 8.85%. Given Kemper’s higher probable upside, research analysts plainly believe Kemper is more favorable than Primerica.

Institutional & Insider Ownership

86.2% of Kemper shares are held by institutional investors. Comparatively, 90.9% of Primerica shares are held by institutional investors. 0.6% of Kemper shares are held by company insiders. Comparatively, 0.6% of Primerica shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Kemper and Primerica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kemper	-9.55%	4.72%	0.94%
Primerica	22.86%	30.90%	5.41%

Summary

Primerica beats Kemper on 11 of the 16 factors compared between the two stocks.

About Kemper

Kemper Corporation is an insurance holding company that provides property and casualty, life, and health insurance products in the United States. Its offerings include personal auto coverage, with a focus on drivers served by specialty insurance markets, as well as life and supplemental health policies. The company distributes insurance through independent agents and other channels. Its businesses include Kemper Auto and Kemper Life, serving individuals and families across the country. Kemper traces its roots to 1912, when Lumbermens Mutual Casualty Company was founded.

About Primerica

Primerica, Inc. provides financial products and services to middle-income households in the United States and Canada. Its core business is term life insurance, which it distributes through a network of representatives who work directly with clients. Through its investment and savings businesses, Primerica offers products and services including mutual funds, annuities, managed investment accounts, and retirement planning solutions. It also connects clients with certain third-party providers of products such as auto and homeowners insurance.