Meadowbrook Insurance Group (NYSE: MIG) and Federated National Holding (NASDAQ:FNHC) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Earnings and Valuation

This table compares Meadowbrook Insurance Group and Federated National Holding’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Meadowbrook Insurance Group N/A N/A N/A N/A N/A
Federated National Holding $366.50 million 0.57 $870,000.00 ($0.19) -84.47

Federated National Holding has higher revenue and earnings than Meadowbrook Insurance Group.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Meadowbrook Insurance Group and Federated National Holding, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meadowbrook Insurance Group 0 0 0 0 N/A
Federated National Holding 0 2 1 0 2.33

Federated National Holding has a consensus target price of $21.00, indicating a potential upside of 30.84%. Given Federated National Holding’s higher possible upside, analysts clearly believe Federated National Holding is more favorable than Meadowbrook Insurance Group.

Profitability

This table compares Meadowbrook Insurance Group and Federated National Holding’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meadowbrook Insurance Group 4.54% 7.19% 1.16%
Federated National Holding -0.73% -1.07% -0.33%

Insider & Institutional Ownership

62.3% of Federated National Holding shares are owned by institutional investors. 10.8% of Federated National Holding shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Federated National Holding pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Meadowbrook Insurance Group does not pay a dividend. Federated National Holding pays out -168.4% of its earnings in the form of a dividend.

Summary

Federated National Holding beats Meadowbrook Insurance Group on 7 of the 10 factors compared between the two stocks.

About Meadowbrook Insurance Group

Meadowbrook Insurance Group, Inc. (Meadowbrook) is a holding company. The Company is a commercial insurance underwriter and insurance administration services company. The Company markets and underwrites specialty property and casualty insurance programs and products through a network of independent retail agents, wholesalers, program administrators and general agents. The Company’s products include Admitted Programs and Standard Market Products, Main Street Excess and Surplus Lines, Non-Admitted Programs, and Specialty Market Products. The Company is also involved in a range of activities, including program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control and reinsurance. The Company also provides the following services to its fee-for-service and agency clients: administration of risk-bearing entities and agency services.

About Federated National Holding

Federated National Holding Company (FNHC) is an insurance holding company that controls all steps in the insurance underwriting, distribution and claims processes through its subsidiaries and its contractual relationships with its independent agents and general agents. The Company is authorized to underwrite homeowners’ multi-peril (homeowners), commercial general liability, federal flood, personal auto and various other lines of insurance in Florida and various other states. The Company markets, distributes and services its own and third-party insurers’ products and its other services through a network of independent agents. The Company’s insurance lines of business include Homeowners’ Property and Casualty Insurance, Commercial General Liability, Personal Automobile and Flood. FNIC and MNIC underwrite homeowners’ insurance in Florida, and FNIC underwrites insurance in Alabama, Louisiana and South Carolina. Alabama and Louisiana.

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