Unico American (NASDAQ:UNAM) and Kingstone Companies (NASDAQ:KINS) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Unico American and Kingstone Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unico American -5.21% -2.91% -1.30%
Kingstone Companies -1.24% -1.78% -0.59%

Risk and Volatility

Unico American has a beta of -0.47, meaning that its share price is 147% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Unico American and Kingstone Companies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unico American 0 0 0 0 N/A
Kingstone Companies 0 0 1 0 3.00

Kingstone Companies has a consensus target price of $13.00, indicating a potential upside of 43.65%. Given Kingstone Companies’ higher probable upside, analysts clearly believe Kingstone Companies is more favorable than Unico American.

Institutional & Insider Ownership

19.0% of Unico American shares are held by institutional investors. Comparatively, 48.9% of Kingstone Companies shares are held by institutional investors. 51.0% of Unico American shares are held by company insiders. Comparatively, 10.3% of Kingstone Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 4.4%. Unico American does not pay a dividend. Kingstone Companies pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kingstone Companies has increased its dividend for 6 consecutive years.

Valuation and Earnings

This table compares Unico American and Kingstone Companies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Unico American $33.61 million 0.94 -$3.17 million N/A N/A
Kingstone Companies $113.77 million 0.86 $3.09 million $0.47 19.26

Kingstone Companies has higher revenue and earnings than Unico American.

Summary

Kingstone Companies beats Unico American on 11 of the 14 factors compared between the two stocks.

Unico American Company Profile

Unico American Corporation, through its subsidiaries, underwrites property and casualty insurance in Arizona, California, Nevada, Oregon, and Washington. It provides property, casualty, health, and life insurance products, as well as insurance premium financing and membership association services. The company's commercial property coverage insures against loss or damage to buildings, inventory, and equipment from natural disasters, including hurricanes, windstorms, hail, water, explosions, and severe winter weather, as well as other events, such as theft and vandalism, fires, storms, and financial loss due to business interruption resulting from covered property damage. It also provides commercial liability coverage that insures against third party liability from accidents occurring on the insured's premises or arising out of its operation; and writes policies to insure commercial property and commercial liability risks on a mono-line basis. In addition, the company offers group dental and vision insurance policies, as well as health and life insurance for individuals and groups. Unico American Corporation markets its insurance products primarily through a network of independent brokers and agents. The company was founded in 1969 and is headquartered in Calabasas, California.

Kingstone Companies Company Profile

Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to small businesses and individuals in New York. The company offers personal lines insurance products, including homeowners and dwelling fire multi-peril, cooperative/condominiums, renters, and personal umbrella policies. It also provides commercial liability policies, such as business owner's policies comprising primarily of small business retail, service, and office risks; artisan's liability policies for small independent contractors; multi-peril policies for larger and specialized risks, and business owner's risks; and commercial umbrella policies. In addition, the company offers for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products. It sells its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.

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