Critical Analysis: EMC Insurance Group (EMCI) and State Auto Financial (NASDAQ: STFC)

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State Auto Financial (NASDAQ: STFC) and EMC Insurance Group (NASDAQ: EMCI) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on their dividend strength, institutional ownership, earnings, analysts' recommendations, risk, profitability and valuation.

dividends

State Auto Financial pays an annual dividend of $ 0.40 per share and a dividend yield of 1.2%. The EMC Insurance Group pays an annual dividend of $ 0.92 per share and a dividend yield of 2.9%. State Auto Financial pays 33.3% of its income in the form of a dividend. The EMC Insurance Group pays 84.4% of its dividend profit, suggesting that the gain may not be enough to cover the dividend payment in the future. The EMC Insurance Group has increased its dividend for nine consecutive years. Clearly, the EMC Insurance Group is the better dividend stock given its higher return and longer-term dividend growth.

Rating and result

This table compares revenue from State Auto Financial and the EMC Insurance Group, earnings per share (EPS) and valuation.

gross receipts Price / sales ratio net income Earnings per share Price-earnings ratio
State Auto Financial $ 1.28 billion 1.12 $ 12.80 million $ 1.20 27.58
EMC Insurance Group $ 701.98 million 0.99 – $ 7.47 million 1.09 USD 29.35

State Auto Financial generates higher revenues and earnings than the EMC Insurance Group. State Auto Financial is trading at a lower price-to-earnings ratio than the EMC Insurance Group, suggesting that it is currently the most affordable of the two stocks.

profitability

This table compares Net Margin, Return on Equity and Return on Investment from State Auto Financial and EMC Insurance Group.

net margins return on equity return on investment
State Auto Financial 1.00% 6.09% 1.77%
EMC Insurance Group -1.06% 4.09% 1.40%

Analyst Ratings

This is a breakdown of current ratings and target prices for State Auto Financial and EMC Insurance Group, as reported by MarketBeat.

Sell ​​reviews Keep ratings Buy reviews Strong buy ratings Rating score
State Auto Financial 0 1 0 0 2.00
EMC Insurance Group 0 2 0 0 2.00

State Auto Financial currently has a consensus target of $ 30.00, suggesting a potential drop of 9.37%. The EMC Insurance Group has a consensus target of $ 30.50, suggesting a potential 4.66% decline. With EMC Insurance Group likely to move higher, analysts believe the EMC Insurance Group is cheaper than State Auto Financial.

Risk and volatility

State Auto Financial has a beta of 0.42, meaning the stock price is 58% less volatile than the S & P 500. In comparison, the EMC Insurance Group has a beta of 0.51. This means that the stock price is 49% less volatile than the S & P 500.

Institutional and insider property

34.6% of State Auto Financial's shares are owned by institutional investors. By comparison, institutional investors own 27.4% of the shares of EMC Insurance Group. 2.0% of State Auto Financial's shares are owned by insiders. By comparison, 2.9% of EMC Insurance Group shares belong to insiders. Strong institutional ownership is a sign that foundations, large money managers and hedge funds expect a stock to outpace the market over the long term.

Summary

State Auto Financial outperformed the EMC Insurance Group on 9 of the 15 factors compared to the two stocks.

State Auto Financial Company Profile

State Auto Financial Corporation writes personal, business and specialty insurance products through its subsidiaries. It is divided into four segments: personal insurance, commercial insurance, special insurance and investment business. The personal insurance segment mainly comprises passenger cars, household contents insurance and other personal insurance products. The commercial insurance segment mainly comprises commercial motor vehicles, commercial multi-hazard, fire and alliance insurance, general liability and employee compensation insurance for the small and medium business insurance market and rural and ranch insurance. The Specialty Insurance segment offers commercial cover that requires specialized product drawing, claims processing or risk management. This segment markets and subscribes to special real estate exposures with a focus on catastrophe risks for real estate as well as general liability. markets and subscribes to commercial vehicle, health, roof, property and liability insurance; and markets and distributes homogeneous risks covering the commercial car, general liability and property. The Investment Operations segment offers investment management services to affiliated insurance companies. The company markets its products primarily through independent agencies, including retail agencies and wholesale brokers. The company was founded in 1950 and is headquartered in Columbus, Ohio. The State Auto Financial Corporation is a subsidiary of State Automobile Mutual Insurance Company.

Company profile of EMC Insurance Group

EMC Insurance Group Inc., an insurance holding company, provides property-casualty insurance and reinsurance products in the United States. It operates in two segments, property and casualty insurance and reinsurance. The property and casualty insurance segment subscribes to commercial and private insurance products. Commercial insurance includes motor vehicle, property, employee compensation and liability, as well as other products that provide protection against burglary and theft, aircraft, maritime and other losses. The personal insurance lines include car owners, homeowners and umbrella policies. The reinsurance segment offers reinsurance for other insurers and reinsurers. EMC Insurance Group Inc. offers its products to small and medium-sized businesses, institutions and individuals through independent insurance agents. The company was founded in 1974 and is based in Des Moines, Iowa. EMC Insurance Group Inc. is a subsidiary of Employers Mutual Casualty Company.

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