Analyzing Crawford & (NYSE:CRD.B) & National General Holdings Corp (NGHC)
Crawford & (NYSE: CRD.B) and National General Holdings Corp (NASDAQ:NGHC) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, risk, earnings and institutional ownership.
Institutional & Insider Ownership
17.6% of Crawford & shares are owned by institutional investors. Comparatively, 53.4% of National General Holdings Corp shares are owned by institutional investors. 51.0% of Crawford & shares are owned by insiders. Comparatively, 3.4% of National General Holdings Corp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for Crawford & and National General Holdings Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National General Holdings Corp||0||1||2||0||2.67|
National General Holdings Corp has a consensus price target of $25.00, indicating a potential upside of 21.71%.
Crawford & pays an annual dividend of $0.20 per share. National General Holdings Corp pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Crawford & pays out 35.1% of its earnings in the form of a dividend. National General Holdings Corp pays out 13.6% 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. National General Holdings Corp is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Crawford & and National General Holdings Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National General Holdings Corp||3.70%||10.43%||2.23%|
Volatility & Risk
Crawford & has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, National General Holdings Corp has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Valuation and Earnings
This table compares Crawford & and National General Holdings Corp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|National General Holdings Corp||$3.84 billion||0.57||$277.98 million||$1.18||17.41|
National General Holdings Corp has higher revenue and earnings than Crawford &. Crawford & is trading at a lower price-to-earnings ratio than National General Holdings Corp, indicating that it is currently the more affordable of the two stocks.
National General Holdings Corp beats Crawford & on 8 of the 12 factors compared between the two stocks.
Crawford & Company Profile
Crawford & Company (Crawford) is an independent provider of claims management solutions to insurance and self-insured entities. The Company’s Crawford Solution offers claims services, business process outsourcing and consulting services for various product lines, including property and casualty claims management; workers’ compensation claims and medical management, and legal settlement administration. Crawford conducts its operations through four segments: U.S. Services, which primarily serves the property and casualty insurance company markets in the United States; International, which serves the property and casualty insurance company, and self-insurance markets outside the United States; Broadspire, which serves the self-insurance marketplace, primarily in the United States, and Garden City Group, which serves the class action, regulatory, mass tort, bankruptcy and other legal settlement markets, primarily in the United States.
National General Holdings Corp Company Profile
National General Holdings Corp. is a specialty personal lines insurance holding company. Through its subsidiaries, the Company provides a range of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche products. It operates through two segments: Property and Casualty (P&C) and Accident and Health (A&H). Its P&C segment offers its P&C insurance products through a network of agents, a number of affinity partners and through direct-response marketing programs. Its A&H segment provides accident and non-major medical health insurance products targeting its existing P&C policyholders and the anticipated market of employed persons who are uninsured or underinsured. The P&C segment operates its business through three distribution channels: agency, affinity and direct. The A&H segment provides supplemental accident and health insurance products.
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