Contrasting Progressive (NYSE:PGR) and Kinsale Capital Group (NYSE:KNSL) – Riverton Roll

Progressive (NYSE:PGR) and Kinsale Capital Group (NASDAQ:KNSL) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Dividends

Progressive pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Kinsale Capital Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. Progressive pays out 9.0% of its earnings in the form of a dividend. Kinsale Capital Group pays out 17.9% 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. Progressive has increased its dividend for 1 consecutive years and Kinsale Capital Group has increased its dividend for 2 consecutive years. Progressive is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations for Progressive and Kinsale Capital Group, as reported by MarketBeat.

Progressive presently has a consensus price target of $80.77, indicating a potential upside of 8.78%. Kinsale Capital Group has a consensus price target of $102.00, indicating a potential downside of 3.66%. Given Progressives higher possible upside, equities research analysts plainly believe Progressive is more favorable than Kinsale Capital Group.

Earnings and Valuation

This table compares Progressive and Kinsale Capital Groups gross revenue, earnings per share and valuation.

Progressive has higher revenue and earnings than Kinsale Capital Group. Progressive 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.

Institutional & Insider Ownership

78.7% of Progressive shares are held by institutional investors. Comparatively, 82.7% of Kinsale Capital Group shares are held by institutional investors. 0.4% of Progressive shares are held by insiders. Comparatively, 8.3% of Kinsale Capital Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Progressive and Kinsale Capital Groups net margins, return on equity and return on assets.

Volatility and Risk

Progressive has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Kinsale Capital Group has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Summary

Progressive beats Kinsale Capital Group on 10 of the 17 factors compared between the two stocks.

About Progressive

The Progressive Corporation, through its subsidiaries, provides personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services primarily in the United States. Its Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, and snowmobiles. The company's Commercial Lines segment provides primary liability, physical damage, and other auto-related insurance for autos, vans, pick-up trucks, and dump trucks used by small businesses; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and non-fleet long-haul operators; dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses; tow trucks and wreckers used in towing services and gas/service station businesses; and non-fleet taxis, black-car services, and airport taxis. Its Property segment provides residential property insurance for homes, condos, manufactured homes, and renters, as well as offers personal umbrella insurance, and primary and excess flood insurance. The company also offers policy issuance and claims adjusting services; home, condominium, renters, and other insurance; and general liability and business owner's policies, and workers' compensation insurance. In addition, it offers reinsurance services. The Progressive Corporation sells its products and services through independent insurance agencies, as well as directly on Internet, and mobile devices, and over the phone. The company was founded in 1937 and is headquartered in Mayfield Village, Ohio.

About Kinsale Capital Group

Kinsale Capital Group, Inc. provides as a casualty and property insurance products in the United States. Its commercial lines offerings include construction, small business, energy, excess and general casualty, life sciences, allied health, health care, commercial property, environmental, public entity, inland marine, and commercial insurance, as well as product, professional, and management liability insurance; and homeowners insurance. The company markets and sells insurance products through a network of independent insurance brokers. Kinsale Capital Group, Inc. was founded in 2009 and is headquartered in Richmond, Virginia.

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Contrasting Progressive (NYSE:PGR) and Kinsale Capital Group (NYSE:KNSL) - Riverton Roll