Loews Corporation (NYSE: L) and Kinsale Capital Group (NASDAQ:KNSL) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Loews Corporation and Kinsale Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Loews Corporation 8.44% 4.84% 1.47%
Kinsale Capital Group 16.25% 12.31% 4.26%

Valuation & Earnings

This table compares Loews Corporation and Kinsale Capital Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Loews Corporation $13.28 billion 1.20 $3.33 billion $3.32 14.23
Kinsale Capital Group $163.42 million 5.25 $46.37 million $1.25 32.73

Loews Corporation has higher revenue and earnings than Kinsale Capital Group. Loews Corporation 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.

Insider & Institutional Ownership

58.6% of Loews Corporation shares are held by institutional investors. Comparatively, 79.8% of Kinsale Capital Group shares are held by institutional investors. 11.8% of Loews Corporation shares are held by insiders. Comparatively, 11.2% of Kinsale Capital Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Loews Corporation pays an annual dividend of $0.25 per share and has a dividend yield of 0.5%. Kinsale Capital Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Loews Corporation pays out 7.5% of its earnings in the form of a dividend. Kinsale Capital Group pays out 19.2% 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Loews Corporation and Kinsale Capital Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Loews Corporation 1 1 0 0 1.50
Kinsale Capital Group 0 0 2 0 3.00

Loews Corporation currently has a consensus price target of $39.00, suggesting a potential downside of 17.43%. Kinsale Capital Group has a consensus price target of $43.50, suggesting a potential upside of 6.33%. Given Kinsale Capital Group’s stronger consensus rating and higher probable upside, analysts plainly believe Kinsale Capital Group is more favorable than Loews Corporation.

Volatility & Risk

Loews Corporation has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Kinsale Capital Group has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500.

Summary

Kinsale Capital Group beats Loews Corporation on 10 of the 16 factors compared between the two stocks.

Loews Corporation Company Profile

Loews Corporation is a holding company. The Company, through its subsidiaries, is engaged in commercial property and casualty insurance; operation of offshore oil and gas drilling rigs; transportation and storage of natural gas and natural gas liquids, and operation of a chain of hotels. The Company has five segments consisted of its four individual operating subsidiaries, CNA Financial Corporation (CNA), Diamond Offshore Drilling, Inc. (Diamond Offshore), Boardwalk Pipeline Partners, LP (Boardwalk Pipeline) and Loews Hotels Holding Corporation (Loews Hotels), and the Corporate segment. CNA’s insurance products include commercial property and casualty coverages, including surety. CNA’s services include risk management, information services, warranty and claims administration. CNA’s core business, commercial property and casualty insurance operations include Specialty, Commercial and International lines of business.

Kinsale Capital Group Company Profile

Kinsale Capital Group, Inc. is a specialty insurance company. The Company focuses on the excess and surplus lines (E&S) market in the United States. The Company operates through the Excess and Surplus Lines Insurance segment. The Company markets and sells these insurance products in approximately 50 states and the District of Columbia through a network of independent insurance brokers. The Company’s commercial lines offerings include construction, small business, excess casualty, general casualty, energy, professional liability, life sciences, product liability, allied health, healthcare, commercial property, management liability, environmental, inland marine, commercial insurance and public entity. The Company writes an array of coverages with a focus on smaller commercial buyers. The Company also writes a small amount of homeowners insurance in the personal lines market. The Company’s subsidiaries include Kinsale Management, Inc. and Kinsale Insurance Company.

Receive News & Ratings for Loews Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Loews Corporation and related companies with MarketBeat.com's FREE daily email newsletter.