Kinsale Capital Group (NYSE:KNSL – Get Rating) and ProAssurance (NYSE:PRA – Get Rating) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Volatility and Risk
Kinsale Capital Group has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, ProAssurance has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.
Get Kinsale Capital Group alerts:Insider and Institutional Ownership
84.4% of Kinsale Capital Group shares are held by institutional investors. Comparatively, 87.3% of ProAssurance shares are held by institutional investors. 6.2% of Kinsale Capital Group shares are held by insiders. Comparatively, 1.2% of ProAssurance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Kinsale Capital Group and ProAssurance's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Kinsale Capital Group | 20.32% | 24.01% | 7.75% |
| ProAssurance | 3.37% | 5.37% | 1.16% |
Dividends
Kinsale Capital Group pays an annual dividend of $0.52 per share and has a dividend yield of 0.2%. ProAssurance pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Kinsale Capital Group pays out 8.3% of its earnings in the form of a dividend. ProAssurance pays out 27.8% 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. Kinsale Capital Group has raised its dividend for 5 consecutive years.
Analyst Recommendations
This is a summary of recent recommendations for Kinsale Capital Group and ProAssurance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kinsale Capital Group | 0 | 2 | 2 | 0 | 2.50 |
| ProAssurance | 0 | 0 | 0 | 0 | N/A |
Kinsale Capital Group presently has a consensus price target of $290.00, indicating a potential upside of 13.91%. Given Kinsale Capital Group's higher probable upside, equities analysts plainly believe Kinsale Capital Group is more favorable than ProAssurance.
Valuation & Earnings
This table compares Kinsale Capital Group and ProAssurance's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kinsale Capital Group | $639.78 million | 9.11 | $152.66 million | $6.23 | 40.87 |
| ProAssurance | $1.12 billion | 1.03 | $144.12 million | $0.72 | 29.88 |
Kinsale Capital Group has higher earnings, but lower revenue than ProAssurance. ProAssurance 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.
Summary
Kinsale Capital Group beats ProAssurance on 13 of the 16 factors compared between the two stocks.
About Kinsale Capital Group
(Get Rating)
Kinsale Capital Group, Inc., a specialty insurance company, provides property and casualty insurance products in the United States. The company's commercial lines offerings include construction, small business, excess and general casualty, commercial property, allied health, life sciences, energy, environmental, health care, inland marine, public entity, and commercial insurance, 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 ProAssurance
(Get Rating)
ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through Specialty Property and Casualty, Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, and Lloyd's Syndicate segments. It offers professional liability insurance for healthcare providers and institutions, and attorneys; liability insurance for medical technology and life sciences risks; and workers' compensation insurance, such as guaranteed cost policies, policyholder dividend policies, retrospectively rated policies, and deductible policies, as well as alternative market solutions that include program design, fronting, claims administration, risk management, SPC rental, asset management, and SPC management services for individual companies, agencies, groups, and associations. The company also participates in Lloyd's of London Syndicate 1729, which underwrites property and casualty insurance, and reinsurance. It markets its products through independent agencies and brokers, as well as an internal sales force. The company was founded in 1976 and is headquartered in Birmingham, Alabama.
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