Kemper (KMPR) vs. Its Rivals Critical Comparison

Kemper (NYSE: KMPR) is one of 22 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its competitors? We will compare Kemper to related companies based on the strength of its institutional ownership, profitability, valuation, dividends, risk, analyst recommendations and earnings.

Risk and Volatility

Kemper has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Kemper’s competitors have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Institutional & Insider Ownership

57.8% of Kemper shares are held by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 0.9% of Kemper shares are held by insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Kemper and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kemper 4.32% 4.47% 1.09%
Kemper Competitors 6.38% 11.55% 2.66%

Valuation and Earnings

This table compares Kemper and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Kemper $2.52 billion $16.80 million 31.08
Kemper Competitors $11.13 billion $534.17 million 163.05

Kemper’s competitors have higher revenue and earnings than Kemper. Kemper is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Kemper pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Kemper pays out 43.2% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 50.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kemper and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper 0 1 0 1 3.00
Kemper Competitors 112 798 847 21 2.44

Kemper presently has a consensus price target of $55.00, suggesting a potential downside of 20.29%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 2.78%. Given Kemper’s competitors higher probable upside, analysts plainly believe Kemper has less favorable growth aspects than its competitors.

Summary

Kemper competitors beat Kemper on 12 of the 15 factors compared.

Kemper Company Profile

Kemper Corporation (Kemper) is a diversified insurance holding company. The Company, through its subsidiaries, provides automobile, homeowners, life, health and other insurance products to individuals and businesses. The Company operates through two segments: Property & Casualty Insurance, and Life & Health Insurance. The Property & Casualty Insurance segment’s products include personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.

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